(Bloomberg) -- Deutsche Bank AG Chief Financial Officer James von Moltke said buying a domestic competitor is among options that the lender has been studying, though any such move wouldn’t happen right away.
“We’re always looking at our option set, as any sort of well managed company should, and domestic consolidation is clearly on the list of things that you look at,” von Moltke said in an interview on Wednesday when asked about the lender’s response to a potential takeover of rival Commerzbank AG by Italy’s UniCredit SpA.
The comments are the clearest indication yet how much UniCredit’s decision to build a major stake in Commerzbank has changed the strategic landscape for Deutsche Bank. UniCredit has said it’s considering an acquisition, potentially creating a bank that could surpass Deutsche Bank in balance-sheet size and sales in Germany.
While a deal would remove one potential takeover target, there are “a number” of potential opportunities Deutsche Bank could consider in the future, von Moltke said on a separate earnings call with analysts on Wednesday. He didn’t identify any of those and only said that “we’ve given thought to the question” of how the lender can play a role in banking consolidation.
Bloomberg reported in January that Deutsche Bank stepped up internal deliberations about the possibility of takeovers involving European lenders including Commerzbank and ABN Amro Bank NV. There are significant hurdles to any potential tie-up and the chances of a big transaction ultimately happening were seen as low, people familiar with the matter said at the time.
Deutsche Bank held formal takeover talks with Commerzbank in early 2019 but the two firms ultimately broke off negotiations after deciding that a deal would carry too many risks. Deutsche Bank has since implemented a deep restructuring that has helped boost profitability.
“We intend to remain number one in Germany,” von Moltke said in the interview. He added that a Commerzbank takeover by UniCredit wouldn’t substantially change the level of domestic competition, given Germany’s fragmented financial industry.
A deal may even afford Deutsche Bank an opportunity to win over clients as it would create a distraction for Commerzbank and UniCredit’s German unit, von Moltke said.
Deutsche Bank has been speaking with advisers to help evaluate possible responses to UniCredit’s approach as it wants to remain prepared in an evolving situation even though it prefers not to get involved, Bloomberg has reported. Von Moltke has previously signaled the lender wants to remain on the sidelines.
Von Moltke said on a separate earnings call with journalists that Deutsche Bank doesn’t currently own a stake in Commerzbank.
Asked in the interview on Wednesday when the time would be right for Deutsche Bank to conduct a large-scale takeover, von Moltke declined to give a precise date but said 2025 would be a “milestone” year in getting there.
“Deutsche Bank is positioned to play a leading role in European consolidation,” von Moltke said. “The industrial logic for bank mergers makes sense, but we needed time to be fully ready, and that time hasn’t come.”
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