Deutsche Bank Plans to Eliminate Dividend for Two Years in Overhaul
- Cryan targets higher CET1 ratio, aiming for 12.5% from 2018
- Cost-income seen dropping to 65% by 2020 as previously planned
Why Deutsche Bank Is Eliminating 2015, 2016 Dividends
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Deutsche Bank AG said it plans to suspend dividends for two years as co-Chief Executive Officer John Cryan seeks to improve capital levels and returns by cutting costs.
The bank, which has paid a dividend since Germany’s postwar reconstruction, plans to recommend resuming payouts from fiscal year 2017, according to a statement late Wednesday in Frankfurt. The lender wants to lift its common equity Tier 1 ratio, a key measure of financial strength, to at least 12.5 percent by the end of 2018.