Frankfurt - Deutsche Bank, which runs Europe’s biggest investment bank by
revenue, said it expects revenue to be little changed this year as an
improved environment for banks helps offset the impact of disposals.
“The outlook reflects the expected modest economic recovery in
Europe, while growth in the Americas is expected to benefit from fiscal
stimulus, as well as the positive impact of an improving interest rate
environment,” the bank said in its annual report published on Monday.
expect a meaningful client activity pick-up in 2017, of which we have
already seen evidence in the beginning of this year.”
Chief executive officer
John Cryan, 56, is seeking to boost revenue after spending almost two
years navigating legal probes and cutting back risk in the investment
In a strategic about-face announced this month, Cryan said he
would tap shareholders for new cash to rebuild capital buffers and
abandon a planned sale of a German consumer-banking unit to help the
bank to return to a “modest growth mode.”
Deutsche Bank is raising €8bn by issuing
new shares at €11.65 apiece, the bank said on Sunday, a discount of
about 35% from Friday’s close. The bank said previously that the
move would boost its common equity Tier 1 ratio, a key benchmark of
financial strength, to 14.1% from 11.9% at the end of
2016. It vowed to keep it “comfortably above” 13%.
The bank’s shares have gained 69% since closing at a record
low on September 26, the second-best performer in the Bloomberg Europe 500
Banks and Financial Services Index.
The bank now plans to reintegrate the
Deutsche Postbank unit it had planned to sell as well as combine its
trading and corporate and investment banking divisions. Deutsche Bank
wants to free up another €2bn of capital by selling assets
including shares in its asset management business.
Deutsche Bank said earlier this month that the new phase of its
overhaul will cause the loss of additional jobs, without specifying how
many. That comes after an announcement in 2015 that it would eliminate
about 9 000 jobs by the end of 2018 to cut costs.
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