Deutsche Bank share price rises on "fundamental reorganisation"

 
James Nickerson
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Cryan said he wants to create a more focused bank (Source: Getty)

Deutsche Bank AG's share price rose in early morning trading, helping push European stocks higher.

The Stoxx Europe 600 was up 0.7 per cent , while the Dax was up 0.84 per cent and FTSE 100 was trading relatively flat at 0.2 per cent up.

The bank's stock was up 2.8 per cent, pushed higher after it was announced it was reshuffling its management to restore its reputation with regulators and boost profits.

Deutsche Bank has rarely undergone such a fundamental reorganisation in its history. This also requires tough decisions,” said supervisory board chairman Paul Achleitner.

Read more: Deutsche Bank's investment arm is split in two

The bank has come under pressure following its part in the Libor rigging scandal, getting a $2.5bn (£1.7bn) fine in the process. Former co-chief executives Juergen Fitschen and Anshu Jain resigned in June as a result, replaced by John Cryan.

Germany's biggest lender is overhauling its management and investment bank structure as Cryan attempts to reinvigorate the company’s performance following a number of fines and shareholder dissatisfaction.

Read more: Deutsche Bank bosses Anshu Jain and Jurgen Fitschen bow to pressure and quit

"Deutsche Bank has been under duress for some months on fears that the bank has been too committed to trading, particularly derivatives together Libor and possibly FX misdemeanours. Deutsche share price has fallen 25 per cent in the last six months," said David Buik, market commentator at Panmure Gordon & Co.

The rising share price also comes days after Deutsche Bank reported it expects to post a loss of €6.2bn in its third quarter results.

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