Deutsche Bank Completes €1 Billion Share Buyback and Launches New €500 Million Program
Deutsche Bank (DB) completed a €1 billion share buyback program on August 21, repurchasing 35.7 million shares at an average price of €28 per share. The bank has now launched another buyback initiative worth up to €500 million starting August 25 and ending by December 11. This new program is the first funded from current-year net profit. The move follows a strong performance in Q2, with after-tax profits rising 10% year-over-year to €1.9 billion and total H1 earnings reaching a record €4.1 billion. Deutsche Bank’s Common Equity Tier 1 (CET1) ratio stands at 13.9%, within its target operating range of 13.5%-14%. The bank claims the new buyback is fully covered by existing capital deductions. However, concerns remain about sustainability due to volatile revenue streams and rising costs. Noninterest expenses increased year-over-year while credit provisions dropped sequentially but could rise again in a downturn.
Tickers: $DB
Topics: buyback capital management dividend policy