Search

Deutsche Bank to raise €8bn with release of shares

Deutsche Bank has released 687.5 million new shares to existing security holders, in a bid to raise more capital.

LinkedIn Twitter

John Cryan, chief executive of Deutsche Bank, said he expects these shares to raise around €8bn.

 

The announcement was made on March 5 amid other strategic announcements to investors.

 

The bank said the release would enable Deutsche Bank to reach a core capital ratio of approximately 14 percent.

 

The issue is initially underwritten by Credit Suisse, Barclays, Goldman Sachs, BNP Paribas, Commerzbank, HSBC, Morgan Stanley and UniCredit.

 

Since March 3, share price has fallen from 19.12 to 17.65 at the time of going to press today (March 8).

 

In its broader strategy, Deutsche Bank will combine subsidiary retail bank Postbank with its existing German private and commercial banking and wealth management businesses.

 

The bank will also float a minority stake in its asset management division.

 

Cryan said the bank needs to tightly control its costs, explaining the bank was working in a “tough” environment.

 

He said the bank aims to reduce adjusted costs to around €21bn by 2021 - last year the figure stood at around €24bn.

 

Cryan added: “I am proud that together we have made progress since the autumn of 2015 and have put the worst crisis for decades behind us.”

 

Another strategic decision made by the bank is the appointment of a group chief information officer to drive its bank-wide technology agenda.

 

Pascal Boillat has this week taken on the newly-created role and will report to group chief operating officer Kim Hammonds.

 

Boillat joined Deutsche Bank in 2016 as chief information officer and head of operations for the corporate and investment bank.

 

In his new role, he will be responsible for defining technology strategy across the bank to serve clients while further enhancing standardisation and digital capabilities.

 

The bank said Boillat will work closely with the business divisions to modernise the bank’s IT environment to reduce complexity, risk and enable business growth.

 

He will also work with regulators to strengthen the bank’s controls and lead the bank’s technology development centres globally.

 

LinkedIn Twitter
YOU MIGHT ALSO LIKE

Trade bodies for alternative lenders complete merger

The Consumer Finance Association (CFA) and the BCCA, which represent alternative lenders and high-cost short-term credit providers, have completed their merger

Revealed: The F5 and Commercial Finance Awards shortlists

The shortlists have today been revealed for the F5: Future of Finance Awards and the Commercial Finance Awards. Both events will take place at the Hilton Bankside in London on October 31.

Credit Summit marks decade milestone in 2018  

The Credit Summit will return to the QEll Centre on March 15 2018, marking a decade of the event and 10 years since the financial crisis
LATEST IN ANALYSIS

The CS Interview

Renaissance man
LinkedIn Twitter

Renaissance man

Features

Engineering a self-service solution in car finance
LinkedIn Twitter

Engineering a self-service solution in car finance

Opinion

"It’s up to the financial services industry to help teach students the necessary skills to manage their finances"
LinkedIn Twitter

"It’s up to the financial services industry to help teach students the necessary skills to manage their finances"

Dispatches

Lloyds results reveal £2bn of debt in forbearance
LinkedIn Twitter

Lloyds results reveal £2bn of debt in forbearance

Upcoming events

TRI Conference: Special Situations & Turnaround


TRI Awards 2017


Mortgage Conference 2017


F5 Conference 2017

Credit Strategy

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group