Deutsche Bank was down 9.7% and Commerzbank 8.2% by mid-morning in Frankfurt
and Commerzbank traded sharply lower on Tuesday after the previous day’s sale of more than 5 per cent in both of Germany’s top two lenders by an undisclosed investor.
The exit by the large shareholder follows a similar move by U.S. private equity firm Cerberus in recent months and comes as both banks implement turnaround strategies to lift profitability and rebuild investor confidence.A statement from Deutsche Bank said that it remained “confident” in its strategy.
“Our focused business model and risk-management capabilities have proven their resilience in challenging times,” it said.“The bank’s business model and risk management have proven effective in challenging times,” it said. The sale by the unnamed investor resulted in proceeds of €1.75-billion , based on calculations from information provided by bookrunner Morgan Stanley.
Capital Group of Los Angeles is one of the few investors that holds such sizable stakes in both banks.Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.
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