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Deutsche Bank completes $8.5 billion capital increase

Staff Writer |
Deutsche Bank's CEO John Cryan said an era of cutbacks was over after completing an 8 billion euro ($8.5 billion) capital increase.

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The money will be used to pay legal penalties, keep regulators happy and make fresh investments.

"It is clear that we will not succeed by shrinking further," John Cryan said in a letter to staff after Deutsche Bank's latest capital hike, which took its total capital raised over seven years to 30 billion euros, just below its market value.

Cryan's cash call was backed by top shareholders - a group of Qatari investors, U.S. fund Blackrock and China's HNA Group - whose stakes and influence over Germany's biggest bank would otherwise have been diluted, one source said.

"Our capital increase should eliminate any remaining doubt about Deutsche Bank's stability.

This is why it's even more important to focus on a topic that has been in the background for quite some time: growth," the British CEO said.

Cryan, who has pledged to reward shareholders' trust by seeing through a turnaround of Deutsche, acknowledged that recent feedback showed that while many investors and analysts in Europe were still sceptical about Germany's biggest lender, U.S. investors were more positive.

"They have seen first-hand how well banks are recovering in their home market and how profitable they can be. They expect us to turn the corner too," he said.

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