Deutsche Bank CEO queries German bank merger ardor

FRANKFURT (Reuters) - The extent of consolidation that Germany's banking sector is likely to see this year remains unclear, Deutsche Bank (DBKGn.DE: Quote, Profile, Research) Chief Executive Josef Ackermann told a German newspaper on Sunday.

In the interview in Die Welt, released ahead of publication on Monday, Ackermann also repeated that Germany's largest bank expected to make a profit in the second quarter and saw no need to raise fresh capital. He declined to give a forecast for 2008.

Asked by the newspaper if 2008 would be the year of reorganization for the country's banks, Ackermann said: "You can't say, definitively, because the environment is difficult. But a consolidation certainly would be in Germany's interest."

Ackermann declined to comment on Deutsche Bank's interest in other German banks now weighing up possible partners, including Deutsche Postbank (DPBGn.DE: Quote, Profile, Research), Allianz's (ALVG.DE: Quote, Profile, Research) Dresdner Bank and Citigroup's (C.N: Quote, Profile, Research) German retail operations, Citibank, repeating that for Deutsche Bank, acquisitions must be strategically sensible and create value for shareholders.

"As a global bank, we are not fixed on Germany when it comes to acquisitions," he said, noting that Deutsche this past week had announced the purchase of ABN AMRO's Dutch operations from Belgian-Dutch financial services group Fortis (FOR.AS: Quote, Profile, Research)(FOR.BR: Quote, Profile, Research).

Ackermann also played down prospects of a partnership with Swiss bank UBS (UBSN.VX: Quote, Profile, Research).

"In this case, there would be a question of the headquarters location. Deutsche Bank wants to and will remain in Germany.

"Therefore, some considerations, as interesting as they may be in theory, do not come into question practically."

Ackermann's comments on the Deutsche's second-quarter results were largely a repeat of a statement released by the bank on July 2.