Deutsche Bank chief executive Christian Sewing said the bank is willing to play an active role in European banking unions in the latest example of senior executives of some of the continent’s largest lenders speaking up confirmation in the department.
Sewing told a German newspaper Welt am Sonntag the recent strong performance of the German lender meant that the bank did not want to participate in unions “just as a young partner” despite the ongoing restructuring of the bank which it sees as lost 18,000 jobs.
“That is also important for Germany,” he told the newspaper in an interview. “Reliance on financial services imports would be a strategic mistake.”
Pressure is mounting among European lenders to consolidate as the Covid-19 crisis and a persistently low interest rate environment has plagued continental struggling banks.
READ UBS chairman Axel Weber says a merger with Credit Suisse could take years
While relations between smaller regional lenders have increased in the last 12 months, a mega-merger between key players is expected to allow a European bank to compete more effectively with its Wall Street competitors. so far.
Sewing’s comments come amid growing expectations of large lenders coming together in an effort to scale up. In December, outgoing Credit Suisse chairman Urs Rohner said Schweiz am Wochenende that merging with rival Swiss UBS was not “unreasonable” and would bring benefits. This follows reports that the two banks had held talks about the possibility of a link.
However, UBS chairman Axel Weber told Bloomberg on December 7 that he does not expect the bank to join Credit Suisse anytime soon.
Sewing said Deutsche ‘s recent performance, with earnings in the third quarter affecting analyst expectations, has put it in a stronger position. “We are getting better and better and creating the pre-requisites for sitting at the table if European banks are consolidated – and not just as a young partner,” he told Welt am Sonntag.
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