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The
capital hike is its fourth since 2010. Together with a partial
listing of the asset-management unit and a sale of other assets,
the move should take its core capital ratio - a key measure for
regulators - above 13 percent from 11.9 percent at end-2016.
Germany's biggest lender, weighed down by litigation costs and
writedowns, has fallen behind Wall Street rivals. It has spent
the last 18 months trimming its portfolio, throwing out bad
clients and trying to get its technology into shape.
"The question is whether this will be the last capital hike or
whether the bank will need more yet again in a few years. Until
now, none of the restructuring measures have borne fruit,"
Stefan de Schutter, a trader at Frankfurt-based Alpha, said.
The new shares represent a dilution of a third for existing
shareholders, who include 10 percent owner Qatar. Deutsche Bank
shares had already fallen by more than 1 percent on Friday on
media reports it was considering raising fresh capital.
By 0857 GMT on Monday, the shares were trading 5.4 percent lower
at the bottom of the German blue-chip DAX <.GDAXI>, which was
down 0.7 percent.
On Sunday, Deutsche Bank sketched out a strategy that included a
reorganization of some of its businesses, the scrapping of a
plan to sell its Postbank German retail bank and the promotion
of two executives as deputy CEOs.
"We await more detail," wrote analyst Magdalena Stoklosa of
Morgan Stanley, which does not have a formal recommendation on
Deutsche Bank stock because it is one of the underwriters of the
rights issue.
"A credible integration of Postbank, further clarity of progress
on investment banking restructuring... stabilization of outflows
and restoring confidence in wealth and asset management
businesses are all issues management would need to address."
(Reporting by Hakan Ersen and Georgina Prodhan; Editing by Maria
Sheahan)
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