Templates by BIGtheme NET
Home » Finance » Deutsche Bank says has cash to pay risky debts
Deutsche Bank says has cash to pay risky debts

Deutsche Bank says has cash to pay risky debts

FRANKFURT: Deutsche Bank, Germany’s biggest lender, has felt compelled to reassure investors that it has sufficient cash to pay its riskiest debts, as banking shares around the world take a hammering on slowdown fears.

In a short statement late Monday, the bank whose shares have plummeted by nearly 40 percent since the beginning of the year said that it has more-than-sufficient means to pay coupons on its riskiest debt both this year and next year.

“The 2016 payment capacity is estimated to be approximately one billion euros ($1.1 billion),” sufficient to pay so-called additional tier 1 (AT1) coupons of approximately 350 million euros on April 30, the statement said.

The estimated pro-forma payment capacity for 2017 would approximately 4.3 billion euros, thanks to proceeds from the sale of its 20 percent stake in China’s Hua Xia Bank, as well as reserves “available to offset future losses.”

The decision to issue such a statement was seen as unusual and appears to highlight the bank’s nervousness amid speculation in German media about its vulnerability to possible takeover, given the low value of its share price.

Deutsche Bank has had negative press for years now amid a series of scandals and litigation. And it chalked up a record loss of 6.8 billion euros last year.

A new chief executive brought in last year, British-born John Cryan, is attempting to steer the bank out of its current woes.

Copyright AFP (Agence France-Presse), 2016

Courtesy : BRecorder



Share On Facebook
Share On Twitter
Share On Google Plus
Share On Linkdin
Contact us
Please Like Facebook Fan Page
By Liking facebook Page you are Updated about Latest Videos & News