Plans to commence stock buybacks valued at around €450 million starting in August of next year, as disclosed by our site.
Deutsche Bank Announces Capital Distribution Strategy for 2021-2025
Deutsche Bank has received the necessary supervisory approvals for its share repurchases, marking a significant step towards its capital distribution objectives. The German lender aims to return a cumulative total of €8 billion to its shareholders between 2021 and 2025, a combination of dividends and share repurchases.
The bank's strategy has already shown promising results, with approximately €5.4 billion in capital distributions paid out since 2022, including €2.1 billion announced for 2025 alone. This growth in distributions is reflected in the increasing size of both dividends and share repurchases, indicating a commitment to generating shareholder value.
James von Moltke, the bank's Chief Financial Officer, expressed his pleasure about turning the bank's strength into returns for shareholders. He also reaffirmed the bank's commitment to return €8 billion of capital to shareholders in respect of the years 2021-2025.
Deutsche Bank plans to resume share repurchases in 2023, with a target volume of up to €450 million. This is approximately 50% higher than the volume in 2022. The bank aims to commence share repurchases in August 2023, which is expected to bring the total capital distributed to shareholders during 2022 and 2023 to approximately €1.75 billion.
The planned share repurchases are part of Deutsche Bank's Global Hausbank strategy, a comprehensive approach to managing capital and creating value for shareholders.
In addition to share repurchases, Deutsche Bank's dividend per share increased by 50% from €0.20 to €0.30 for 2022. Christian Sewing, the bank's Chief Executive Officer, expressed his pleasure about the resumption of share repurchases.
The bank's website reaffirms its commitment to returning capital to shareholders, stating that it aims to continue increasing its tangible book value (TBV) per share, which grew approximately 19% over the period. The planned capital return program has an upside potential beyond the initial €8 billion target, showing flexibility to enhance shareholder returns if performance allows.
In summary, Deutsche Bank’s strategy for 2021-2025 embraces €8 billion or more in cumulative capital distribution, combining share repurchases and dividends, with significant distributions already delivered and further payouts expected through 2025. This approach underscores the bank's commitment to creating value for its shareholders and strengthening its position in the global financial market.
[1] Source: Deutsche Bank's Annual Report 2022 and press releases.
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