Deutsche Bank’s bosses could have expected the annual shareholders meeting on Thursday to be a rowdy affair and they were not disappointed.
Just days before the bank had revealed it was going to have to raise another eight billion euros in capital by selling new shares.
It was not a popular move and co-Chief Executives Anshu Jain and Juergen Fitschen were booed and jeered.
Shareholders’ representative Klaus Nieding, head of the Deutscher Anlegerschutzbund complained: “We see the bank hasn’t been able to raise the capital it needs from its day-to-day business, so it needs capital from the market, from foreign investors. That means a significant dilution of shareholders value, unless they participate in the capital increase – whether they want to or not.”
The eight billion euros capital increase is needed to help to fortify its finances ahead of a regulatory health check due later this year.
Germany’s largest bank is also bogged down in a slew of major lawsuit – more than 1,000 – on top of the over five billion euros it has paid out over the past two years for misconduct settlements and fines stemming mostly from the financial crisis.
That has hit profits. Stefan Krause, the bank’s finance chief, said that it had paid around 350 million euros in legal advisory fees in 2013 alone as the bank works to free itself from investigations and lawsuits.
“We are expecting continued headwinds from legal matters,” Krause said.