Deutsche Bank shares climbed remarkably on Monday, reaching €23.08, the highest level since November 2015. The stock rose 2.6% to €22.86 in XETRA trading, leading gains among DAX companies and outperforming the broader European banking sector, which increased by just 1.1%. This impressive performance is particularly notable when viewed against the year-to-date gain of nearly 38%, with the stock having doubled from its August low of €12.27. The surge follows the bank's successful issuance of Additional Tier 1 (AT1) capital instruments with a nominal value of €1.5 billion, featuring a fixed annual coupon of 7.125% until April 2031. Analysts remain optimistic, with some raising their price targets to €26, citing positive impacts from Germany's financial package that promises higher economic growth estimates and a steeper yield curve.
Capital Measures Boost Investor Confidence
Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Deutsche Bank?
The announcement of the AT1 capital issuance received positive reception from investors, contributing directly to the stock's performance. The securities feature an unlimited term with a preliminary coupon of 7.750% and a first redemption date in April 2031. Market stabilization measures may continue until May 5, 2025, with Deutsche Bank acting as the stabilization coordinator. Trading volume has been robust, with over 3 million shares changing hands by midday. Shareholders may also benefit from increased dividends, with experts projecting a rise from €0.450 per share paid in 2023 to approximately €0.679 for the current year. Analysts forecast earnings of €2.82 per share for 2025, with first-quarter results expected on April 29, 2025.
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