Deutsche Bank to talk capital hike on Sunday

Deutsche Bank’s supervisory board will meet on Sunday to discuss plans for a potential capital increase of around 8 billion euros ($8.5 billion), two sources familiar with the matter said on Saturday. Germany’s biggest bank said on Friday it was preparing a capital increase and was examining several strategic measures, including an initial public offering of a minority stake in its asset management business as well as retaining its Postbank unit and integrating it into its other German retail business. The meeting on Sunday is expected to take place around noon, the sources said. Deutsche Bank declined to comment on the meeting. The capital raising will allow Deutsche Bank to strengthen its balance sheet and free up funds for strategic investments after years of restructuring, a move welcomed by one investor on Saturday. “The announced measures are an important signal for the capital market that the bank is now focussing more on its future and its customers after years of dealing with the past,” fund manager Ingo Speich at Union Investment said in an emailed statement. “In comparison to rivals, Deutsche Bank is poorly capitalised. The legal disputes have cost lots of money and trust,” Speich added.