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Deutsche Bank to raise billions with rights issue

Deutsche Bank to raise billions with rights issue

The stock exchanges at about a large portion of the bank's unmistakable book esteem, underneath European companions including UBS Group AG, which exchanges at 1.3 circumstances book, and France's BNP Paribas SA at 0.9 circumstances book. They trade at less than half of Deutsche Bank's book value, placing the lender among the 10 weakest banks in Europe and far off the peer average of just below book value. Kepler Capital Markets set a €13.99 ($14.73) price objective on shares of Deutsche Bank AG and gave the company a "buy" rating in a research note on Tuesday, October 25th.

The lender also announced a reshuffle of some of its key management positions, with chief financial officer Marcus Schenck and retail bank chief Christian Sewing named deputy chief executives.

The combined business would have more than 20 million customers with planned savings of $23 billion by 2018.

Now that Deutsche Bank management confirmed on Sunday an 8 billion-euro ($8.5 billion) capital increase as well as a pretty major strategic U-turn - it will keep, not sell, German retail unit Postbank - investors would be right to question why the same drivers are behind the wheel.

Deutsche Bank is one of the leading global financial service providers. So much so that when Bloomberg News reported on Friday the bank would be looking at a capital hike after all, its stock fell the most in a week.

Weighed down by litigation costs and writedowns, Deutsche Bank has spent the last 18 months trimming its portfolio, jettisoning unwanted clients and trying to get its technology in shape.

That's helped nearly double the lender's share price since September 26 and made a potential stock sale more attractive. Having played a part in all three revisions of Deutsche Bank's turnaround plan, he might be best placed to pick the best aspects of each. Schenck will run the combined unit with Garth Ritchie, who now leads the trading division. Likewise, the positive performance for the quarter was recorded as 30.05% and for the year was 7.96%, while the YTD performance remained at 11.66%.

Deutsche Asset Management had a modest improvement in revenues as well as the reversal of negative asset flows seen in 2016.

"Investors refused to buy into DB's restructuring plans, given that the latest restructuring, which has taken place past year has not achieved anticipated results and apparently harmed investors' confidence in the bank's ability to succeed", said Ipek Ozkardeskaya, senior market analyst at London Capital Group, in a note.


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