Deutsche Bank changes tack with share issue

Deutsche Bank changes tack with share issue

It has since revealed plans to cut its Brazilian workforce in half and has sold off both its Argentinean and Mexican banks in late 2016. Its share price has also been lifted-along with other banks-by optimism over the USA president Donald Trump's plans for bank deregulation and the prospect of higher interest rates, which help boost lending profits. The company's market capitalization is $25.67 billion.

Yet the developments also underscore how, nearly two years after he took over, Deutsche Bank has been unable to plot a course to a more profitable future while trying to eliminate 9,000 jobs.

Deutsche Bank plans to raise about 8bn euros (£6.9bn, $8.5bn) by issuing new shares.

Deutsche Bank AG (DB) ended last trading session with a change of -4.26 percent. The firm's 50-day moving average is €18.29 and its 200-day moving average is €15.03.

Germany's biggest bank announced plans for the huge share sale on Sunday along with another overhaul of its strategy.

At Citigroup, analysts kept a "sell" and "high risk" rating on Deutsche Bank "given the low return profile and significant strategic execution risks". This integration aims to rationalise central functions and technology platforms to realise annual synergies of 0.9 billion euros by 2022.

The CEO did admit that the company was not going in the right direction and that he wants new tactics to bear fruits. Deutsche will retain a majority stake. The share price is now 2.3 percent versus its SMA20, 9.01 percent versus its SMA50, and 34.5 percent versus its SMA200.

Deutsche Bank fell 1.3 percent to close at 19.14 euros in Frankfurt on Friday, and shares traded in the US continued to drop. Norges Bank purchased a new position in Deutsche Bank AG during the fourth quarter valued at $570,224,000. Bank of Montreal Can now owns 1,904,449 shares of the company's stock valued at $24,929,000 after buying an additional 1,704,438 shares during the period. The Bank is engaged in providing commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals.

In addition to the capital raise, operational restructuring and fine-tuned projections, Deutsche Bank also provided an update on current trading activity.