Deutsche Bank shares soar as US fund buys in

Berlin, Feb 6 (AFP) Shares in Deutsche Bank soared by more than 10 per cent Thursday after a US fund manager took a large stake in the loss-making German lender, seen as a vote of confidence in its turnaround plans. The bank revealed that asset manager Capital Group had taken a 3.1 stake, making it Deutsche's fourth largest shareholder.

Deutsche shares gained more than 12 percent to 9.31 euros (USD 10.20) by 1610 GMT, topping Frankfurt's blue-chip DAX 30 index. "We are happy about the interest in our company, especially from shareholders with the track record and credibility of Capital," Deutsche said in a statement.

Analysts saw the move as a show of faith in Deutsche's massive restructuring after the lender reported a 5.7 billion euro loss for 2019. It was the bank's fifth consecutive year in the red.

The lender hopes to turn the tide by retreating from some activities and refocussing on its business with corporate clients and its home region of Europe. The group also aims to slash 18,000 jobs.

Chief executive Christian Sewing said last week he was "positive" the bank was on the right track, pointing out that last year's hefty loss was in large part due to costs relating to the restructuring. Looking ahead, the bank aims to reach a return on capital employed -- a key measure of bank profitability -- of eight percent by 2022. (AFP) RUP

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