Deutsche Bank said it will beef up its balance sheet with a 2.8 billion euro (2.3 billion pounds) capital increase and unveiled forecast-beating first-quarter earnings following a wave of aggressive cost cuts.
Germany’s flagship lender said it will also seek an additional 2 billion euros of subordinated capital over the next 12 months as it strives to narrow the gap with better-capitalized peers.
Deutsche Bank is among a slew of European banks currently raising capital, including Russia’s second-largest bank VTB , Germany’s second largest lender Commerzbank as well as Greek and Spanish banks.
The Deutsche Bank, the lender aims to improve its ability to increase dividend payouts in coming years. Since 2009, Deutsche Bank has kept its dividend stable at 75 cents a share.
New shares will likely be sold at a discount of 5 to 7 percent to Monday’s closing price of 32.90 euros, financial market sources said.
The move was welcomed by analysts, as a bigger capital cushion gives banks greater flexibility to pay dividends and pursue acquisitions.

Deutsche Bank said it will beef up its balance sheet with a 2.8 billion euro (2.3 billion pounds) capital increase and unveiled forecast-beating first-quarter earnings following a wave of aggressive cost cuts.
Germany’s flagship lender said it will also seek an additional 2 billion euros of subordinated capital over the next 12 months as it strives to narrow the gap with better-capitalized peers.
Deutsche Bank is among a slew of European banks currently raising capital, including Russia’s second-largest bank VTB , Germany’s second largest lender Commerzbank as well as Greek and Spanish banks.
The Deutsche Bank, the lender aims to improve its ability to increase dividend payouts in coming years. Since 2009, Deutsche Bank has kept its dividend stable at 75 cents a share.
New shares will likely be sold at a discount of 5 to 7 percent to Monday’s closing price of 32.90 euros, financial market sources said.
The move was welcomed by analysts, as a bigger capital cushion gives banks greater flexibility to pay dividends and pursue acquisitions.

Deutsche Bank said it will beef up its balance sheet with a 2.8 billion euro (2.3 billion pounds) capital increase and unveiled forecast-beating first-quarter earnings following a wave of aggressive cost cuts.
Germany’s flagship lender said it will also seek an additional 2 billion euros of subordinated capital over the next 12 months as it strives to narrow the gap with better-capitalized peers.
Deutsche Bank is among a slew of European banks currently raising capital, including Russia’s second-largest bank VTB , Germany’s second largest lender Commerzbank as well as Greek and Spanish banks.
The Deutsche Bank, the lender aims to improve its ability to increase dividend payouts in coming years. Since 2009, Deutsche Bank has kept its dividend stable at 75 cents a share.
New shares will likely be sold at a discount of 5 to 7 percent to Monday’s closing price of 32.90 euros, financial market sources said.
The move was welcomed by analysts, as a bigger capital cushion gives banks greater flexibility to pay dividends and pursue acquisitions.