"THE BUSINESS TIMES" said : Deutsche Bank shares plunge 6% on news of capital increase, Banking & Finance

facebook/" target="_blank">shares in Germany's biggest lender Deutsche Bank fell as much as 6.0 per cent as the Frankfurt market opened Monday, hours after the bank announced it would raise cash by issuing new shares. [FRANKFURT] Shares in Germany's biggest lender Deutsche Bank fell as much as 6.0 per cent as the Frankfurt market opened Monday, hours after the bank announced it would raise cash by issuing new shares. Shares in the bank were down 5.4 per cent to trade at 18.10 euros (S$27.06) just before 0815 GMT, making Deutsche the worst performer on the Dax index of leading German companies. Sapped by heavy losses, Deutsche on Sunday said it would deepen a long-running restructuring to focus on home market Germany and raise 8.0 billion euros in new capital. AFPPowered by GET.com


As it stated in

Deutsche Bank shares plunge on news of capital hike

Deutsche Bank has already announced a major restructuring with at least 9,000 jobs cuts planned in Germany alone. In a statement on Sunday, Deutsche Bank Chief Executive John Cryan billed the plans "a significant step forward on the path to creating a simpler, stronger and growing bank." By 9.30am local time (08.30 UTC) on Monday, Deutsche Bank facebook/" target="_blank">shares traded down nearly 5 percent at 18.20 euros ($19.36), having opened even lower on the Frankfurt Stock Exchange. The fall made Deutsche the worst performer in the DAX index of leading German companies, hours after it announced a planned capital increase of roughly 8 billion euros ($8.5 billion) beginning on March 20, as the bank faces 15 billion euros in legal settlement fees incurred since 2012. "Our decisions are a significant step forward on the path to creating a simpler, stronger and growing bank," Cryan was quoted as saying in the statement.


Deutsche Bank facebook/" target="_blank">shares had already fallen by more than 1 percent on Friday on media reports it was considering raising fresh capital. "The question is whether this will be the last capital hike or whether the bank will need more yet again in a few years. "We await more detail," wrote analyst Magdalena Stoklosa of Morgan Stanley, which does not have a formal recommendation on Deutsche Bank stock because it is one of the underwriters of the rights issue. On Sunday, Deutsche Bank sketched out a strategy that included a reorganization of some of its businesses, the scrapping of a plan to sell its Postbank German retail bank and the promotion of two executives as deputy CEOs. FRANKFURT (Reuters) - Shares in Deutsche Bank (DBKGn.DE) fell almost 7 percent in early trading on Monday after the lender announced an 8 billion-euro ($8.48 billion) capital increase that Chief Executive John Cryan had previously declared a last resort.


read more visit us banks

collected by :John Miller