Deutsche Bank tops DAX after plans to increase capital

N.R. | ShareCast | 30 Apr, 2013 11:07 - Updated: 11:58 | | |

general finance

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.


More news

07:56 London pre-open: All eyes on the OPEC meeting, stocks inch higher

US markets might be closed together for Thanksgiving but those hoping for a quiet day could be disappointed with the Organization of Petroleum Exporting Countries (OPEC) set for a pivotal meeting in Vienna.

07:49 Legal & General wins £2.5bn bulk annuity contract with TRW pension scheme

Insurance and investment services group Legal & General has won a £2.5bn bulk annuity contract with the UK pension scheme of US car-parts group TRW Automotive.

08:01 Thursday newspaper round-up: Scotland, GSK, BG, Stagecoach

Scottish MPs will be entitled to vote on UK budgets even though control over income tax will soon be transferred over to the Edinburgh parliament, Labour has revealed shortly before the publication of a cross-party devolution deal on Thursday, the Financial Times found.

07:46 Chinese industrial profits drop by 2.1%, worst decline in two years

Industrial profits in China slumped in October, according to the National Bureau of Statistics, as weak demand, rising costs of labour and falling product prices took their toll on companies' bottom lines.

07:45 GSK-Novartis deal wins US trade regulator approval

Glaxosmithkline is on track to complete its complex three-way £11bn deal with Swiss pharmaceutical peer Novartis next year after US regulators approved the first two parts of the transaction.

07:44 Support and resistance levels for the main equity benchmarks

The following are the technical support and resistance levels for the major global equity benchmarks:

07:43 Business acquistions boost RPC H1 revenue

Rigid plastic packaging supplier RPC Group said its revenue grew in the first half of 2014, courtesy of business acquisitions and satisfying progress in its existing programmes.

07:49 Stagecoach and Virgin win East Coast inter-city rail franchise

Stagecoach Group's 90%-owned joint venture with Virgin Rail has won the contract from the Department for Transport (DfT) to run the new InterCity East Coast franchise for eight years from March 2015.

07:16 Front month Bent crude futures decline 1.5% to $76.56 per barrel

26 Nov US close: Markets rise ahead of OPEC decision, despite negative data

US equity markets rose on Wednesday, despite a rise in jobless claims for the first time since September and mixed data on orders for durable goods.



ECB sovereign-debt buying possible next year, says Constancio

ECB will consider purchasing sovereign debt, its vice president said.


Support and resistance levels Support and resistance levels 25th november 2014