Deutsche Bank announces higher dividends and increases share price through capital release.

Deutsche Bank announces higher dividends and increases share price through capital release.

Deutsche Bank has announced that it will pay higher dividends to its shareholders. This is intended to improve the bank's rating compared to the competition. In response to this announcement, Deutsche Bank's share price rose the most in a year. The institute stated that it had “leeway” to release three billion euros in capital, which could also be used for share buybacks. In the third quarter, the bank beat analysts' estimates with a pre-tax profit as higher corporate revenues offset weaker trading results.

CEO Christian Sewing also promised to pay out eight billion euros within five years in order to further increase the bank's valuation. Compared to book value, Deutsche Bank has a weaker market capitalization than other banks in the industry. The acquisition of British broker Numis is part of Deutsche Bank's efforts to increase its fee income. The bank has also said that interest income is likely to decline in the near term as central banks complete their interest rate hikes and banks have to pay less for deposits.

These announcements and developments have a positive impact on Deutsche Bank's share price. Investors are optimistic and see potential for profits through future distributions and increases in the value of the shares. The higher payouts could also help to strengthen investor confidence in Deutsche Bank and improve the institution's image.

Source: According to a report by diepresse.com