Deutsche Bank announced an €8 billion capital infusion and major strategic changes in its functioning. The measures are part of the bank’s CEO John Cryan’s efforts to put the bank back on the front foot after a year of turmoil. Cryan announced the bank’s third capital raising in four years as well as €2 billion worth of asset sales over the next two years, including the sale of a minority stake in Deutsche’s asset management arm. The capital increase will be through a rights issue of up to 687.5 million new shares at a discount of 39% the bank’s share price of €19.14. The bank will now target a capital ratio of above 13% in future. The strategic overhaul involves cutting down the bank’s four divisions to three. The bank will recombine the markets and corporate finance businesses split in October 2015. Postbank, put up for sale in April 2015, will now stay and be fully integrated with Deutsche’s other retail banking operations. Asset management will form the third pillar of Deutsche’s strategy. The restructuring will cost €2 billion.
