Deutsche Bank says to raise EUR8 bn with new share issue

Cryan was made a CEO in 2015 and oversaw the rollout of the now-defunct “Strategy 2020” plan. Despite persistent fears over its thin capital cushion, Cryan repeatedly told shareholders that the bank didn’t need to raise more money. Before joining European hedge fund firm Brevan Howard in August 2015, the trader was part of Deutsche Bank’s FX options team.

The fundraising plans confirm many investors’ expectations that Deutsche Bank would be forced to tap the market for the third time since early 2013. Company price to earnings (P/E) ratio, which measures the relationship between the earnings of a company and its stock price, is calculated as 121.70.

“Also, we’d been thinking about what to do with PostBank, and we needed equity it we wanted to retain it”, he added.

The lender said it would sell a minority stake in its asset-management unit through an initial public offering in the next two years. The stock lost -3.82% in total of its share price.

Up to 687.5 million new shares will be issued to achieve a capital ratio of comfortably above 13 percent, the bank said. Norges Bank purchased a new position in Deutsche Bank AG during the fourth quarter valued at $570,224,000. The figure was 3.5% at the end of 2016, and will touch 4.1% after the issuance.

Deutsche Bank AG is a Germany-based global investment bank. The bank said it expects around EUR2 billion in restructuring and severance costs in connection with its plans. In 2011, institutional clients accounted for about twice as much revenue as corporate customers. Deutsche Bank AG has a 52 week low of €9.91 and a 52 week high of €19.95. Deutsche Bank could offer as much as 30 percent of the benefits administration unit in the first sale of stock. S&P Global set a €21.00 ($22.34) price objective on shares of Deutsche Bank AG and gave the stock a “neutral” rating in a report on Monday. It should be noted that the figure was 93% in 2014, as the bank’s net income figure was hit by litigation charges.

The bank also said the market environment in Germany is getting better, with prices improving for banking services. The embattled German bank, which faced roughly two years of poor figures, losses, and fines in the face of various misdeeds, has announced plans to complete a strategic overhaul of its business in a variety of areas. Instead, management have focused on trying to sell Postbank.

Meanwhile, the group will “take advantage of the resurgence in client activity” in corporate and investment banking and find more savings by merging its corporate finance, global markets and global transaction banking units into a single division.

He will run the investment bank with Garth Ritchie, a trading executive who came up through the equities business. The reintegrated investment bank should see considerable gains to its operating margin. Postbank, Deutsche Bank’s worldwide private and commercial Clients business and the global Wealth Management business will be part of this division.

Deutsche Asset Management now holds over, with €700 billion of invested assets worldwide.