In the year under review, the financial industry once again faced significant challenges. The regulatory environment became stricter and the requirements on banks’ capital funding further increased. In addition, significant costs for regulation and compliance as well as the currently difficult environment for the bank’s business operations weighed on profitability and thus allowed very limited scope for organic capital growth.
In order to safeguard the Deutsche Bank against challenges in capital funding, to remain flexible, and to strengthen the bank’s competitive position, the bank’s management decided to carry out a capital increase in May 2014. The capital increase from authorized capital against cash payments was successfully completed on June 25, 2014. The gross issue proceeds were € 8.5 billion and the bank’s common shares issued increased by 359.8 million shares to 1,379.3 million shares.
The capital increase consisted of two issuances. With the exclusion of pre-emptive rights, 59.9 million shares with a value of € 1.75 billion were placed with Paramount Service Holdings Ltd., an anchor investor. Paramount Services Holdings Ltd. is an investment company owned and controlled by His Excellency Sheikh Hamad bin Jassim bin Jabor Al-Thani of Qatar. Additionally, a total of 299.8 million new registered common shares were issued with a value of € 6.75 billion. The subscription price was € 22.50 per share. The capital increase led to a strengthening of the bank’s Common Equity Tier 1 (CET1) capital ratio (on a Basel 3 fully loaded basis). The ratio stood at 11.7 % at year-end 2014 compared with 9.7 % in the prior year.
The Management Board and Supervisory Board will propose an unchanged dividend of € 0.75 per share to the Annual General Meeting 2015.