A newspaper report, citing unnamed sources, says there were "serious talks" between the lenders about an asset management combo.

Deutsche Bank and UBS were tight-lipped yesterday over media reports that the German and Swiss lenders are in talks to merge their asset management arms. The report, which said the talks were “serious”, first appeared in the Financial Times on Tuesday, citing unnamed sources. 

The FT said that discussions about a deal have been ongoing for “a couple of months” and one structure being considered is for UBS to split off its asset-management unit and fold it into Deutsche Bank’s DWS Group in exchange for shares in the larger group. Under such an arrangement, Deutsche Bank would remain the largest shareholder.

Deutsche Bank declined to comment when contacted by this news service; UBS also declined comment. UBS is scheduled to issue its first-quarter results today, followed by Deutsche Bank tomorrow.

The future structure of Deutsche Bank has been speculated upon in recent months, with reports that the Frankfurt-listed bank, which has battled to improve performance, might merge with rival German lender Commerzbank.