BERLIN (Reuters) -Deutsche Bank sees the logic that there should be consolidation in the European banking sector and the task in hand is to prepare for that outcome, Chief Financial Officer James von Moltke said on Thursday.

Von Moltke, who was following closely the German bank’s usual line regarding potential mergers said at a BofA Securities financial conference that they should first do a strategic review before considering major transactions.

In response to a question, he stated that “we see the industry logic” and suggested consolidation in European banking.

It’s something we see for the future of our company… We need to focus on transformation to be prepared for it.

Deutsche Bank (DE:) has been repeatedly linked to a possible tie-up with a leading Swiss bank, but Chief Executive Christian Sewing has consistently said that a turnaround plan he launched in 2019 should first bear fruit.

Last year, the bank posted its first profit in full-year since 2014. It also received a rating upgrade from Moody’s (NYSE) last month.

Von Moltke stated that Deutsche’s four businesses units, asset management as well as its corporate, private and investment banks were all performing above or below plan. It is now on track to reach its goal of earning revenue in excess of $25 billion ($29.3B) next year. [L8N2QP1WT]

In response to a U.S. probe into DWS’s asset management arm, von Moltke claimed that DWS “stands behind its disclosures.”

The probe will be conducted, he stated. He also said that Deutsche’s results for the third quarter were not affected by the findings.

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