Deutsche Bank to be taken off Eurostoxx 50 blue-chip index

Deutsche Bank will be removed from Europe's top index of blue-chip companies, after a challenging year deals the bank a new blow.

Germany's largest lender will be demoted from the Eurostoxx 50 index on 24 September, the bank said in a statement this morning.

Deutsche Bank's share price has lost nearly 38 per cent of its value so far in 2018, while its market capitalisation has plummeted 30 per cent to €20.4bn (£18.4bn).

This is due to shrinking long-term profit projections, after several management reshuffles and strategy changes.

Read more: Europe needs global banks, says Deutsche Bank boss Christian Sewing

A statement from Deutsche Bank said its continued efforts to improve its profitability outlook will be "unaffected" by its removal from the index.

The bank added that its restructuring is expected to "support the valuation of Deutsche Bank by the market, and therefore increase market capitalisation".

Deutsche Boerse, which oversees the index, declined to comment on the move when asked by Reuters.

The country's second-largest lender, Commerzbank, is also likely to be removed this month from Germany's blue-chip Dax index due to its narrowing market cap.