сен 28, 2016

German finance ministry denies government working on Deutsche Bank contingency plan

Deutsche Bank has secured a £935m boost to its balance sheet after signing a long-awaited deal to sell Abbey Life, the British pensions business, to the life insurance consolidator Phoenix.

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The German bank, under pressure about its capital strength, said the disposal of the business would add 0.1 percentage points to its closely-watched common equity tier one capital ratio, which was 10.8pc at the end of June. Despite the €1bn cash windfall, Deutsche expects to book a pre-tax loss of €800m on the sale as it must write down goodwill and other intangible assets.

"Deutsche Asset Management will continue to focus on its core businesses of active [investments], passive [investments] and alternatives, while this transaction will also strengthen Deutsche Bank's capital position," said chief executive John Cryan. "We continue to build a simpler and better Deutsche Bank."

Shares in Deutsche Bank gained more than 2pc to €10.78 after the announcement, bouncing from their lowest level in more than a quarter of a century. The stock is more than 50pc below the price it commanded at the start of the year.


The Telegraph
By Tara Cunningham, Business Reporter
28 September 2016