Deutsche Bank shares soar on results, capital hike

30th April 2013, Comments 0 comments

Shares in Deutsche Bank soared by more than 7.0 percent on Tuesday after Germany's biggest lender unveiled a 2.8-billion-euro capital hike and a sharp rise in first-quarter profits.

Deutsche Bank shares leapt by 7.9 percent to an intraday high of 35.49 euros in early trading on the Frankfurt stock exchange but subsequently fell back slightly to show a gain of 6.25 percent.

Late Monday, Deutsche Bank said it would raise around 2.8 billion euros ($3.65 billion) in fresh funds to strengthen its foundations in line with tougher international banking criteria.

Deutsche Bank could issue up to 90 million new shares, a statement said, rasing its core Tier 1 capital ratio from 8.8 percent to around 9.5 percent as so-called Basel 3 rules require banks to boost their capital buffers to protect against possible future shocks to the global financial system.

The shares are to be offered to institutional investors, rather than to individuals, and the shareholders are to be entitled to dividend payments starting with the 2012 fiscal year.

At the same time, the bank posted a first-quarter net profit of 1.7 billion euros, a jump of 18 percent from the same period a year earlier.

Co-chairmen Juergen Fitschen and Anshu Jain said in a statement: "We are proud of the achievements of the bank in the first quarter of 2013. We delivered robust financial performance, with substantial profit growth versus the prior year quarter."


© 2013 AFP

0 Comments To This Article