Deutsche Bank Fares Better in EBA Stress Test Than in 2014
- Analysts have voiced concern that bank needs to sell shares
- CEO John Cryan confirms Deutsche Bank’s 2018 capital target
Deutsche Bank AG scored higher in the European Banking Authority’s stress test this year than in 2014 in a sign that steps to bolster financial resilience are taking hold despite a tougher examination that took account of surging litigation costs.
The company’s common equity Tier 1 ratio fell to 7.8 percent in the adverse scenario, measuring resilience to economic shocks over a three-year period, from 11.1 percent at the end of 2015, the EBA said in a statement on its website on Friday in London. Two years ago, the ratio -- which measures equity as a share of assets weighted by risk -- fell to 7 percent from a starting point of 9.2 percent. Germany’s largest bank outperformed Britain’s Barclays Plc, whose CET1 ratio dropped to 7.3 percent in this year’s test, which used Dec. 31 as a cutoff date.