Reports that Deutsche Bank plans to review possibilities to raise capital in the coming weeks led to a fall in its share price Friday.
Deutsche Bank’s non-executive supervisory board will meet on March 16 and 17 to consider ways to increase capital from selling parts of its asset management business to a stock sale, according to three people close to the bank who asked not to be named, according to Bloomberg.
The sources said such a move would help the bank replenish its capital which would be necessary if Deutsche decides to hold on to its retail arm, Postbank, and fully integrate it into the business rather than sell it. Deutsche Bank has been trying to sell Postbank for several years but has been unable to find a buyer.
The decision as to which of these capital-raising options to pursue has not yet been made, the sources said.
The bank’s shares dropped by 2.9 percent to €18.83, the lowest point in five weeks, Reuters reported.
When contacted by Reuters, the bank refused to comment on the news.