Friday 28 April 2017

Deutsche Bank's biggest shareholder sticking with lender

Photo: Reuters
Photo: Reuters

Tom Finn and Kathrin Jones

Qatari investors who own the largest stake in Deutsche Bank do not plan to sell their shares and could consider buying more if the embattled German bank decides to raise capital, sources familiar with Qatari investment policy told Reuters.

Funds controlled by Qatar's former Prime Minister Sheikh Hamad bin Jassim al-Thani bought 6.1pc of Deutsche in mid-2014 and increased their stake to just under 10pc, including options, in July this year.

But Germany's biggest bank has been engulfed by a crisis of confidence since last month after the US Department of Justice demanded up to $14bn to settle claims that the bank missold US mortgage-backed securities before the financial crisis.

It is fighting the fine but may have to turn to investors for more money if it is imposed in full.

Deutsche shares plunged to record intra-day lows below €10 last week on Friday and although they have since rebounded to just above €12, they are 13pc below last month's peak and 46pc below their close at the end of last year.

It implies the Qataris may have lost over $1.2bn on their investments in the bank. Meanwhile Germany's 'Handlesblatt' has reported that the chief executives of several German blue-chip companies have discussed Deutsche Bank's problems and are ready to offer a capital injection if needed to shore up Germany's largest lender, newspaper Handelsblatt reported on Thursday.

The paper said an emergency could see the companies purchase Deutsche Bank stock to boost its reserves. (Reuters)

Irish Independent

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