"Und der Haifisch, der hat Zähne
und die trägt er im Gesicht
und Macheath, der hat ein Messer
doch das Messer sieht man nicht."
Berthold Brecht, Die Moritat von Mackie Messer, 1928
This is not a big surprise, since there were hints of this sort of drastic action in an obviously troubled bank since early October, but it is always newsworthy when one of The Global Banks feels troubled enough to eliminate its stock dividend for the foreseeable future.
Their goal is apparently to build up capital assets while cutting risky assets from the balance sheet and exiting certain markets.
And so a key global banking counterparty checks itself into rehab for an estimated two years.
Es ist eine Party!
Deutsche Bank scraps dividend for two years, sets financial goalsRelated: Deutsche Bank Downgraded by JP Morgan
By Arno Schuetze, Frankfurt
Oct 28 Deutsche Bank is scrapping this year's and next year's dividends as new Chief Executive John Cryan overhauls Germany's biggest bank to restore growth and put past scandals behind it.
The lender said on Wednesday it was targeting a capital ratio of at least 12.5 percent from the end of 2018.
It is also now targeting a leverage ratio of at least 4.5 percent at the end of 2018 and at least 5.0 percent at the end of 2020 and a return on tangible equity of more than 10 percent by 2018.
"The plan is based on the elimination of the Deutsche Bank common share dividend for the fiscal years 2015 and 2016. The management board expects to recommend the payment of common share dividends commencing from fiscal year 2017 at a competitive payout ratio," Deutsche Bank said. (Reporting by Arno Schuetze; Editing by Georgina Prodhan)
