Frankfurt - Shares in Deutsche Bank AG and UBS AG jumped Wednesday after the two giant European banks ruled out moves for additional capital injections in the wake of the financial market crisis.

By midday Deutsche's stock had bounded ahead by almost 5.0 per cent to 54.95 euros after Germany's biggest bank said it would also report a second-quarter profit and that it had no plans to change its capital level.

This helped to bring to end an end market speculation that the Frankfurt-based financial house would report a second-quarter loss later this month after it slumped into a loss in the first three months of the year following record 2007 earnings.

However, Deutsche has also moved to step back from its previous full-year pretax target of 8.4 billion euros (13.3 billion dollars).

Echoing Wednesday's positive news from Deutsche, UBS said the Zurich-based bank would also not be seeking additional funds after raising almost 30 billion dollars to cover writedowns resulting from the US subprime mortgage market crisis.

The comments by both banks helped to add to hopes that the worst of the subprime crisis, which sent global shares plunging and triggered a world-wide credit crunch, might be drawing to a close.

This is particular the case as UBS has emerged as one of the most prominent victims of the fallout from the US subprime crisis in Europe.

In comments to a Swiss newspaper, UBS chief Peter Kurer said the bank would not need additional capital but declined to comment on the giant financial house's second-quarter earnings outlook.

However, UBS is facing new pressure in the US as a result of a probe into its advice to wealthy clients and a push for the bank to reveal information about the secret accounts of its customers.

Nevertheless, UBS shares gained ground Wednesday, rising almost 4 per cent at one point and as a result helping to reverse Tuesday's steep falls and set the stage for rebound in European banking stocks.

The statements from the two banks also came against the background of a fresh round of reports that merger talks between two of Germany's leading banks were progressing.

The talks between Commerzbank AG and Dresdner Bank, the banking offshoot of Munich-based insurer Allianz AG, would pave the way for a major shakeout in the banking sector in Europe's biggest economy. (dpa)