FRANK­FURT

The Pak Banker - - COMPANIES/BOSS -

Deutsche Bank, Ger­many's big­gest len­der, has felt com­pelled to re­as­sure in­vestors that it has suf­fi­cient cash to pay its riski­est debts, as bank­ing shares around the world take a ham­mer­ing on slow­down fears. In a short state­ment, the bank whose shares have plum­meted by nearly 40 per­cent since the be­gin­ning of the year -- said that it has more-than-suf­fi­cient means to pay coupons on its riski­est debt both this year and next year.

"The 2016 pay­ment ca­pac­ity is es­ti­mated to be ap­prox­i­mately one bil­lion euros ($1.1 bil­lion)," suf­fi­cient to pay so-called ad­di­tional tier 1 (AT1) coupons of ap­prox­i­mately 350 mil­lion euros on April 30, the state­ment said. The es­ti­mated pro-forma pay­ment ca­pac­ity for 2017 would ap­prox­i­mately 4.3 bil­lion euros, thanks to pro­ceeds from the sale of its 20 per­cent stake in China's Hua Xia Bank, as well as re­serves "avail­able to off­set fu­ture losses." The de­ci­sion to is­sue such a state­ment was seen as un­usual and ap­pears to high­light the bank's ner­vous­ness amid spec­u­la­tion in Ger­man me­dia about its vul­ner­a­bil­ity to pos­si­ble takeover, given the low value of its share price.

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