Deutsche Bank plans dividend suspension, close to sanctions settlement

Deutsche Bank - External

Deutsche Bank has said that it plans to suspend dividends for two years as co-Chief Executive Officer John Cryan seeks to improve capital levels and returns by cutting costs.

Bloomberg News reports that the bank, which has paid a dividend since Germany’s postwar reconstruction, plans to recommend resuming payouts from fiscal year 2017, according to a statement late Wednesday in Frankfurt.

The bank wants to lift its common equity Tier 1 ratio, a key measure of financial strength, to at least 12.5% by the end of 2018.

In the meantime, Bloomberg also reports that Deutsche Bank is close to settling a regulatory probe into alleged violations of U.S. sanctions laws, probably paying about $200m, according to a person briefed on the matter.

The New York Department of Financial Services and the Federal Reserve may announce the deal with the bank as soon as next week, the person said, asking not to be identified because the talks are confidential. The agreement wouldn’t resolve investigations opened by the Manhattan district attorney’s office and the U.S. attorney’s office in Manhattan, the person said.

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