HVB, though, Deutsche would have to forget its declared aim of a 25% return on equity.

ECONOMIST: A large Bavarian bank prepares itself for marriage

HVB, like many German private banks, had neglected retail banking, where returns have long been thin.

ECONOMIST: A large Bavarian bank prepares itself for marriage

HVB's bad-loan provisions this year, some think, will be even more than the euro2.5 billion forecast by the bank.

ECONOMIST: German banks

HVB, even if it plugs its property hole it still lacks a coherent strategy and brand: new leadership could bring new vitality.

ECONOMIST: European banks

"This is quite a clear statement given the current danger for giving outlooks and it is more than many investors had expected, " said Georg Stuerzer, an analyst at HVB.

BBC: DaimlerChrysler profits 'to rise'

To the displeasure of the European Commission, Poland's government has gone to court to block the takeover of Germany's HVB by Italy's Unicredit, because it involves the merger of two Polish subsidiaries that the government is against.

ECONOMIST: Closing the borders to business | The

HVB's reputation with shareholders and rating agencies.

ECONOMIST: Bank Austria and Hypovereinsbank: Running repairs | The

HVB's risk-based assets by euro100 billion.

ECONOMIST: Bank Austria and Hypovereinsbank: Running repairs | The

HVB's German corporate clients.

ECONOMIST: Bank Austria and Hypovereinsbank: Running repairs | The