Deutsche Bank’s merger knife won’t spare Asia

Higher cost: The Commerzbank AG headquarters standing beyond a Deutsche Bank AG bank branch in Frankfurt. The lack of a retail banking operation for Deutsche or Commerzbank in the region translates into a higher cost base. That’s likely to render Asia a target for cuts. — Bloomberg

SOMETIMES being good enough just isn’t enough. That’s the situation Deutsche Bank AG’s Asian employees may find themselves in if a merger with Commerzbank AG goes ahead.

Deutsche Bank has relatively resilient investment- and corporate-banking franchises in the region, where Commerzbank has only a tiny presence.