Commerzbank CFO Engels Discusses German Banking Struggles - TheStreet

NEW YORK (TheStreet) -- Germany's largest banks have been struggling as of late, this week especially as Deutsche Bank (DB) - Get Report stock plummeted due to reports that several hedge fund investors pulled billions of dollars out of the bank. Deutsche Bank stock is however rebounding this morning, up 6.5% to $12.22. 

Deutsche Bank's troubles sent a ripple effect through European banking stocks, most had declined this week including Germany's second largest lender, Commerzbank (CRZBY), currently down more than 3% on the ETR.

Also pressuring Commerzbank on Friday was the company's announcement yesterday that it is overhauling its structure as a result of the speculation currently spreading through the market.

Commerzbank CFO Stephen Engels spoke to BloombergTV from Frankfurt this morning, the interview was aired on "Bloomberg Go." Engels discussed the bank's position, the current market sentiment and what the company will do going forward.

"I think we have seen in general over the whole week very negative market sentiment stock, not only in Germany, but also across Europe. And indeed it has been not a very nice day for the German banking stock, but I think that is a very short term view and I am convinced that we'll get forward after the next week," Engels said.

Engels was questioned on how Deutsche Bank can convince investors that the capital position is strong enough to help boost the markets again.

"Again, that's a job that Deutsche Bank needs to do. Our capital position with the 12% I think is well in average with the market, especially if you take into account our low risk profile of the overall bank," Engels said.

Moving on to discuss the company's change of strategy, Engels was questioned on if the government was involved with this decision.

"The government as a shareholder was not directly involved, obviously, as other shareholders were not involved. But the government has board representation and the full board has agreed to the new strategy," the CFO continued.

In the short term Engels isn't expecting a lot of consolidation in the German sector, however, he sees possible consolidation in the long term as "hard to predict."