September 4, 2018 / 8:31 AM / 14 days ago

Deutsche Bank to exit Eurostoxx 50 in blow to lender: documents

FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) will be booted from the Eurostoxx 50 index of leading European stocks, documents seen by Reuters on Tuesday showed, the latest blow to Germany’s largest lender.

The move, which was expected, comes as the bank struggles to deliver sustainable long-term profits after multiple strategy and management reshuffles.

German exchange operator Deutsche Boerse periodically reassesses the composition of the Stoxx index, using trading data to measure market value and trading volume as a basis for deciding which companies to include.

People are silhouetted next to the Deutsche Bank's logo prior to the bank's annual meeting in Frankfurt, Germany, May 24, 2018. REUTERS/Kai Pfaffenbach

Deutsche Bank’s shares are down nearly 38 percent so far this year.

Deutsche Bank said in an emailed statement that it was committed to its strategy of improving the bank’s profitability.

“We expect that this will support the valuation of Deutsche Bank by the market, and therefore increase market capitalization,” The bank said in a statement. “This commitment, and our ongoing activities to strengthen the bank, are unaffected by the announcement by the index provider.”

Deutsche Boerse (DB1Gn.DE), which oversees the Eurostoxx index, declined to comment. A spokesman said the results from the scheduled Stoxx reshuffle, based on trading data from the end of August, would be made public on Sept. 24.

On Wednesday, Deutsche Boerse is also expected to announce a reshuffle of the German DAX index GDAXI>. Germany’s No. 2 private bank, Commerzbank (CBKG.DE), is expected to lose its position in Germany’s blue-chip index based on its shrinking market capitalization and lower trading volumes.

Reporting by Tom Sims, Hakan Ersen and Andreas Framke; Editing by Edward Taylor

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