Thursday 6 February 2020 10:39 am

Deutsche Bank adds investment giant Capital Group as major shareholder

Deutsche Bank has welcomed Capital Group as a major shareholder after the Los Angeles-based investment giant has bought a 3.1 per cent stake in the German bank. 

The investment, disclosed in a regulatory filing, makes Capital — which managed $1.8 trillion— one of Deutsche’s largest shareholders.

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It also marks the first major new shareholder in over a year for the bank, which has posted steep losses in recent years, and a new supporter for chief executive Christian Sewing’s turnaround plan for the lender. 

Sewing unveiled his ambitious restructuring plans for Deutsche last July, and updated investors on progress in December. 

Late last month, he vowed to “go on the offensive” in 2020, despite restructuring costs pushing Deutsche to its largest annual loss in five years. 

“We are happy about the interest in our company, especially from shareholders with the track record and credibility of Capital,” a Deutsche Bank spokesperson said.

Deutsche Bank’s largest shareholder remains the Qatari royal family, with a combined stake worth at least 6.1 per cent, according to the bank’s website.

The next largest investor is Blackrock with 4.49 per cent, and Hudson Executive Capital with 3.14 per cent. 

Capital Group previously owned a stake in Deutsche a couple of years ago but then sold it, Reuters reported, citing a person with knowledge of the matter. Capital decided to go in again at the end of last year, they said, speaking on condition of anonymity.

Capital Group declined to comment on the investment.

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Deutsche Bank’s shares had fallen to record lows last year, but have risen 25 per cent in 2020 so far. 

The lender’s shares rose as much as 5.1 per cent in morning trading in Frankfurt following news of Capital’s investment.