Date: Tuesday 30 Apr 2013
An 18 per cent jump in first quarter net earnings and plans to increase capital via a new share issuance have taken Deutsche Bank shares over six per cent higher on Tuesday morning.
Germany's largest bank reported net earnings of €1.65bn for the first quarter thanks to savings from cost cuts and 2% revenue growth to €9.4bn. The Tier 1 core capital rate was 8.8%.
The results came in above estimates by analysts at Baader Bank, who were expecting earnings of €1.21bn and revenue of €9.23.
Deutsche Bank also announced that it will increase up to €6.3bn in capital, including $3.7bn through the issue of 90m new shares. The bank plans to adjust its capital reserves to new global banking capital requirements.
"We are now among the best capitalised banks in our global peer group," co-Chief Executive Officer Anshu Jain said on a conference call on Tuesday. "These measures allow us to take advantage of organic growth opportunities in a changing competitive landscape."
Jain changed course after saying three months earlier that a share sale wasn’t in investors’ interests.
Analysts at Japanese brokerage firm have upgraded the stock to a 'neutral' rating from 'underweight' and lowered their price target to €36 from €37.
On Tuesday morning, Deutsche Bank shares were showing a 6.67% gain to €35.09 as the most bullish DAX component.
or share it with one of these popular networks:
You are here: News