Deutsche Bank to raise billions with rights issue

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Deutsche Bank plans to raise about 8bn euros (?6.9bn, $8.5bn) by issuing new shares.

The share sale by the troubled German bank is part of a wider shake-up.

The bank will partially float its asset management business and retain Postbank – the retail banking business it had been expected to sell.

Deutsche will be reorganised around three divisions: private banking and wealth management; asset management; and corporate and investment banking.

Germany’s biggest bank is trying to reshape itself after grappling with huge losses and a 15bn euro legal bill imposed by regulators since 2012.

In December, Deutsche Bank said it had agreed a $7.2bn (?5.9bn) payment to US authorities to settle an investigation into mortgage-backed securities.

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The sale of residential mortgage-backed securities played a significant role in triggering the 2008 financial crisis.

The rights issue will be launched on 20 March in a bid to repair its balance sheet.

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Chief executive John Cryan will be supported by two new co-deputies

Deutsche will also promote chief finance officer Marcus Schenck and retail banking boss Christian Sewing to become co-deputy chief executives under chief executive John Cryan.

Mr Schenck will also become co-head of the investment bank alongside Garth Ritchie, who runs the bank’s bond and equities trading activities.

Jeffrey Urwin, head of corporate and investment banking, will step down, and a new chief finance officer will be sought.

Deutsche aims to cut costs from 24.1bn euros to 22bn euros by 2018, as well as resume paying a “competitive dividend” to shareholders.

Deutsche Bank to raise billions with rights issue

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