New Restructuring

Deutsche Bank Prepares €8-Billion Capital Hike, Board Reshuffle

Deutsche Bank – John Cryan
CEO John Cryan is preparing bold measures to strengthen the bank. Source: Arne Dedert / DPA

Deutsche Bank announced a set of far reaching new measures to reverse the company’s fortunes for once and for all. It is preparing for a possible €8-billion, or $8.5-billion, capital increase and several further strategic steps, Germany’s largest bank said in a statement Friday evening.

The bank’s shares had fallen earlier on Friday after news agency Bloomberg had reported on a possible share sale.

The Frankfurt-based bank is burdened by investment banking missteps dating back to the last decade and billions of euros in settlements and fines. The bank now plans to keep its retail subsidiary Postbank — instead of divesting it — and to sell a minority stake in Deutsche Asset Management through a public stock listing, the bank said.

Deutsche Bank’s supervisory board plans to meet on Sunday to decide on the measures, people familiar with the matter told Handelsblatt. The bank will use the proceeds from the share sale to meet future capital requirements and fund its restructuring.

“Implementation is subject to market conditions and approval by the Management Board and the Supervisory Board. At this stage, no decision to proceed has been made,” the bank said in a statement.

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