Deutsche Bank prepares 8 billion-euro capital increase

Deutsche Bank prepares 8 billion-euro capital increase

Deutsche Bank prepares 8 billion-euro capital increase

"The Bank intends to continue serving the needs of its clients across transaction banking, corporate finance, capital markets, asset management, wealth management and retail banking".

The bank said it will keep its Postbank consumer division and cut total costs to 22 billion euros by 2018, the Frankfurt-based company said in a statement Sunday. That is a reversal of costly plans announced in 2015 to separate the business in preparation for a spinoff.

"We have always said that our strong preference was not to raise fresh capital when there were lots of other things we planned to do anyway" Cryan told CNBC at the World Economic Focus on January 18.

Other restructuring moves: Deutsche Bank will combine its Postbank unit, which offers banking in post offices, into its Private & Commercial Bank. "The sale of a minority stake in the asset management is something in the right direction", the source said. Deutsche Bank had been looking for a buyer for Postbank.

Mr Schenck will also become co-head of the investment bank alongside Garth Ritchie, who runs the bank's bond and equities trading activities.

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Losses and mounting legal bills raised doubts about Deutsche Bank's financial strength, which intensified after the U.S. Justice Department in September demanded $14 billion to end an inquiry into mortgage securities that fueled the 2008 financial crisis.

The bank said the share sale would boost its common equity Tier 1 ratio to 14.1 percent and set a new target of "comfortably above" 13 percent.

"We still need to manage two items in parallel, which is the capital buildup until the end of 2018 where we need to be or want to be at least at 12.5%, and we're committed to that and do everything that is necessary".

Numerous bank's investors see it as a necessary move despite the billions already plowed into the bank in the past seven years.

After unveiling plans to restructure the business into four units to much fanfare only a year and a half ago, the group's strategy has pivoted once again to further simplify the business model into three divisions.

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