Breaking News

Asia Today ISSN 1861-4604 Monday, September 25, 2017

Headline

Deutsche Bank plans to raise 8 billion euros through sale of new shares to boost finances

Shares plunge

Share on Facebook March 7, 2017, Reporter : Big News Network, Reader : 417

news

BERLIN, Germany - Germany's biggest bank - Deutsche Bank - plans to raise some eight billion euros (6.9 billion pounds, $8.5 billion) through the sale of 687.5 million new shares in order to boost its finances.> BNN

The sale, due later this month on March 21, led to shares of the bank falling almost seven percent in early trading, even as the troubled lender goes in for an overhaul after dealing with huge losses and a 15 billion euro legal bill imposed by regulators since 2012.

The bank also plans to list its asset management business and revamp its business structure.

"Our decisions are a significant step forward on the path to creating a simpler, stronger and growing bank," Deutsche Bank CEO John Cryan said in a statement.

"On strategy, it's obvious we had a change of heart," Cryan remarked to journalists on Sunday afternoon.

"These measures will make Deutsche Bank stronger and place us back firmly on a path to sustainable growth."

Commenting on the move, Stefan de Schutter, a trader at Frankfurt-based Alpha, said, "The question is whether this will be the last capital hike or whether the bank will need more yet again in a few years. Until now, none of the restructuring measures have borne fruit."

The lender scrapped plans to sell its Postbank unit, saying it was unable to do so at an acceptable price. 

Instead, it now wants to merge the operation into its other German retail business.

"We are very positive over prospects of banking in Germany," Cryan said.

However, analyst Magdalena Stoklosa of Morgan Stanley, wrote, "We await more detail."

"A credible integration of Postbank, further clarity of progress on investment banking restructuring... stabilization of outflows and restoring confidence in wealth and asset management businesses are all issues management would need to address."

Other European stocks also slid on Monday following Deutsche Bank's slide. 

The Stoxx Europe 600 lost 0.4 percent to 373.69, but slightly reduced the loss as the consumer-services sector started to show a modest gain.

Top indexes in France and Germany both declined more than 0.5 percent.

More Euro Asia news of the month

Photos Voting underway as Merkel seeks fourth term as German Chancellor

Berlin [Germany], Sept.24 (ANI):Germany will hold federal elections on Sunday to choose a chancellor for the next four years. Angela...

Photos Will Germany's right-wing AfD Party manage to topple Merkel?

BERLIN, Germany - As German Chancellor Angela Merkel’s support soars, Germany's right-wing populist Alternative for Germany...

Photos U.K. hit by terrorist attack, blast rocks London underground

LONDON, U.K. - In what is being termed another terrorist attack to hit Britain, an explosion rocked London Underground at Parsons Green...

Photos BMWs new electric car concept boasts 100km launch of 4 seconds

PanARMENIAN.Net - At the Frankfurt auto show, BMW showed off the latest addition to its iSeries vehicles: The two-door i Vision Dynamics...

Photos Bundesliga announce Bibiana Steinhaus as first female referee

Bibiana Steinhaus will make history in Germany on Sunday when she becomes the first woman to referee a Bundesliga game, reports the...

Photos Angela Merkel Defeated her Opponent Martin Schulz in a TV Debate

German Chancellor Angela Merkel defeated Social Democrat Martin Schulz in a TV debate last night, according to a study by ARD...

Photos Fans Nazi chants a shame on Germany - Loew

Berlin - Germany coach Joachim Loew on Sunday dubbed as "shameful" Nazi-era chanting by a hardcore group of "so-called...

Photos Bomb disposal experts in Frankfurt defuse massive WW2 bomb

FRANKFURT, Germany - In a huge operation, after about 65,000 people were evacuated, bomb disposal experts in Frankfurt managed to...

Photos Turkey detains two more Germans for "political" reasons

PanARMENIAN.Net - Two German citizens have been detained in Turkey for what Berlin believes are "political" reasons, the...

Flying Reimagined

Stock Index

Monday, September 25, 2017

Life Style

Photo Gallery

FEUILLETON