Deutsche Bank, still smarting after the collapse of its planned merger with Dresdner Bank, is not seeking any new acquisitions but hopes to become one of the world's leading investment banks in its own right, the bank's chief executive said yesterday.
Speaking at Deutsche Bank's annual general meeting in Frankfurt, Mr Rolf Breuer said that the bank was looking at ways to co-operate with other institutions that fell short of a full merger.
Mr Breuer insisted that Deutsche Bank would not abandon its private customers but he left shareholders in no doubt that he sees investment banking as the cornerstone of his strategy to make the bank a major global player.
Deutsche has already shunted its private customers into a wholly-owned subsidiary called Bank 24 and Mr Breuer remains interested in talking to the insurance giant Allianz about co-operation in retail banking.
Allianz is eager to use Bank 24's retail network to sell insurance and other financial services.
Criticism of Mr Breuer's disastrous handling of the botched merger with Dresdner was muted but some shareholders expressed concern that Deutsche Bank's managers were ceding too much control to British and Americans.
Two US investment bankers joined the management board this week, reinforcing the impression that investment banking, which accounted for more than half of Deutsche Bank's profits last year, is calling the shots.
"I would like to know whether Deutsche Bank in future will be run from Frankfurt or London.
"One gets the impression that investment banking is pulling the strings, said Mr Klaus Nieding, managing director of a shareholders' lobby group.
Other shareholders complained that the bank, which conducts all its board meetings in English, was using too many English words and phrases in its German language publications.
Mr Breuer brushed aside all such grumbles but he acknowledged that Deutsche Bank's relatively low market capitalisation left it vulnerable to being taken over itself in a hostile bid.
"We are not shielded from a hostile bid. This worries us greatly. The market value of Deutsche Bank is not in line with what a buyer would get," he said.
