Deutsche Bank (ETR:DBK) have announced plans to raise €8 billion from the market, through the issuance of new shares.
The bank is set to initiate the capital raising through the issue of up to 687.5 million discounted shares. Alongside this, Deutsche Bank will also reorganise itself into three divisions, as opposed to the previous four. These divisions will include private banking and wealth management, asset management and corporate and investment banking.
In addition, the bank is set to float its asset management businesses, yet retain its hold on retail asset Postbank following the measures. It is estimated that the restructuring move is set to total €2 billion.
Its chief finance officer Marcus Schenck and retail banking boss Christian Sewing are also set to be promoted to co-deputy chief executives under current chief executive John Cryan.
Mr Cyran commented that the restructuring was “a significant step forward on the path to creating a simpler, stronger and growing bank”.
The troubled German bank is attempting to restructure itself in order to cope with huge losses relating to legal bills that have been imposed by European regulators since 2012.
Deutsche Bank agreed to pay agreed to pay a $7.2 billion (£5.9 billion) settlement to US authorities following an investigation into its involvement with mortgage-backed securities.
This follows a reported €1.4 billion loss in February, as a consequence of mounting legal fees and multiple regulator fines over the course of the year. Nevertheless, at the time Mr Cyran remained confident about the bank’s ability to cope with the losses.
He stated: “Our results for the year 2016 were heavily impacted by decisive management action taken to improve and modernise the bank, as well as by market turbulence for Deutsche Bank. We proved our resilience in a particularly tough year. We finished 2016 with pleasingly strong capital and liquidity ratios and we are optimistic after a promising start to this year.”
As of currently, Shares in the bank are down 5.38 percent at 09.05AM (GMT).