Deutsche Bank boosts finances with new capital
FRANKFURT, Germany (AP) — Deutsche Bank says it is raising 8 billion euros ($11 billion) in new capital from investors to strengthen its finances as it faces tighter regulation and seeks to invest in promising business areas.
The bank says it will raise 6.3 billion euros in a rights offering and has already secured 1.75 billion euros by placing shares with a single investor from Qatar.
Co-CEO Anshu Jain told analysts Monday that the fresh capital would also help it meet "unforeseen challenges" that may be ahead.
The move will increase the bank's capital ratio, a key measure of financial strength, to 11.8 percent. That is well beyond the bank's 10 percent goal.
Banks across Europe have been shedding risky investments and raising new capital as they seek to meet new regulatory standards.