The effort to establish a euro-area banking regulator in Frankfurt is exposing deepening fault lines among the city’s banks as policy makers jostle over the shape of the industry.
Executives of Europe’s biggest banks are under pressure to surrender their bonuses after six companies were fined a record 1.7 billion euros ($2.3 billion) for manipulating benchmark interest rates.
Deutsche Bank AG outperformed UBS AG and Barclays Plc in securities sales in the third quarter as it sought to shrug off Europe’s debt crisis and remain one of the top three global investment banks.
Deutsche Bank AG and Commerzbank AG, Germany’s two-biggest lenders, led declines in Germany’s benchmark DAX Index as talks on a Greek debt swap drag on.
Commerzbank AG, Germany’s second- biggest bank, will boost core Tier 1 capital by 776 million euros ($1.02 billion) in the first half after swapping hybrid capital instruments for new shares.
Deutsche Bank AG will probably report a loss in the fourth quarter because of restructuring costs, missing out on a market rebound that helped profit surge at U.S. rivals such as Goldman Sachs Group Inc.
European banks climbed after Cyprus reached a deal with creditors on a 10 billion-euro ($13 billion) bailout, avoiding a disorderly default and a collapse of its banking industry.
"There's still pressure on their revenues and the fixed income business is feeling the market environment."
- Andreas Plaesier on Jul 25, 2014