Deutsche Bank held exploratory talks with Commerzbank

Deutsche Bank and Commerzbank studied a potential tie-up this month, but the deal fell through, according to reports from German publication Manager Magazin.

Top executives from the two lenders met over a period of two weeks in August to discuss the possibility of a merger, according to the sources, as Deutsche considers its options following drop in its share price to levels hariking back to the 1970´s.

A deal would see the two banks merge their respective consumer units, but for now they have both decided to focus on their internal reorganisation before possibly revisiting a deal, Bloomberg reported, citing a person familiar with the discussions.

Chief executive John Cryan denied the reports, while calling for mergers between European players.

"Part of the work we are doing is to make the bank a bit smaller," Cryan said, when asked about the reports at a conference organised by Handelsblatt.

"We need more mergers, at a national level, but even also across national borders," Cryan said.

Shares in Deutsche have plummeted 51% over the last 12 months, and are 85% below its highest price, set in 2007.

Stock in Germany´s largest lender was trading at roughly a third of their book value on Wednesday.

Deutsche Bank's senior executives were due to meet over the next weekend to discuss the lender´s strategy review.

German banks were facing pressure to streamline given fierce competition in the retail-banking market, even as low interest rates squeeze profits.

Piling on the pressure too, Deutsche Bank was facing 7,000 cases and regulatory actions in German courts according to the Financial Times.

Shares in Deutsche Bank finished the session 2.44% higher at €13.19.