FRANKFURT (Reuters) - Deutsche Bank’s (DBKGn.DE) Chief Executive said on Friday the era of downsizing Germany’s flagship lender was over, after completing an 8 billion euro capital increase to pay legal penalties, keep regulators happy and make fresh investments.
“It is clear that we will not succeed by shrinking further,” John Cryan said in a letter to staff published on the company’s website on Friday.
“Our capital increase should eliminate any remaining doubt about Deutsche Bank’s stability. This is why it’s even more important to focus on a topic that has been in the background for quite some time: growth.”
He added that a prudent approach to expanding its business would be taken going forward.
“None of us want to generate revenues that will need to be paid back in future, for example due to litigation costs. None of us want to experience a multi-billion dollar request arising from this ever again,” Cryan said.
He added that feedback sought over the last couple of weeks showed that many investors and analysts in Europe were still skeptical about Deutsche Bank, while U.S. investors were more positive.
“They have seen first-hand how well banks are recovering in their home market and how profitable they can be. They expect us to turn the corner too.”
Reporting by Arno Schuetze; Editing by Georgina Prodhan