2023-04-27 19:14:02
Christian Sewing, CEO of Deutsche Bank
Image: dpa
US regional banks are struggling. Deutsche Bank and Commerzbank can only get the all-clear once they have been resolved. But it doesn’t look like that.
An Thursday there was a small turnaround for European bank stocks: They were able to regain some ground that they had lost on the previous days due to concerns about the ailing US regional bank First Republic. Deutsche Bank’s share price was driven by good quarterly figures and a more ambitious cost target. On Thursday afternoon, the share had gained more than 3 percent in value to 9.85 euros. In the previous week, however, the price was still above the EUR 10.00 mark. The Commerzbank course also went up 2.0 percent to EUR 10.53. But it had been 10.80 euros in the previous week.
There is a reason for the price losses in the past few days: the American regional bank First Republic is fighting for survival. A look at the recent course of the share illustrates the drama. The price fell 49 percent on Tuesday, only to fall another 30 percent a day later. The panic was triggered by the announcement by the First Republic on deposit withdrawals in the first quarter. These decreased from 176 to 104 billion dollars.
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