Deutsche Bank shares rose Monday and its bonds stabilized, as investors gave a reprieve to the turmoil facing one of Europe’s largest banks.
In afternoon trade in Frankfurt, Deutsche Bank shares
DBK,
DB,
rose 5%, following three straight weeks in which its stock dropped at least 9%.
Deutsche Bank shares have been hit by the worries that brought Credit Suisse
CS,
to its knees. Switzerland’s decision to wipe out the contingent convertible bonds, or AT1 bonds, of Credit Suisse before the equity has hit similar structures across the globe, despite other regulators saying they would not follow the Swiss precedent.
On Monday, Deutsche Bank’s 7.5% AT1 security was trading at 70 cents on the dollar, according to Tradeweb.
Deutsche Bank has been more profitable than Credit Suisse, which lost money for five consecutive quarters.
On another key issue, Deutsche Bank said 33% of its total deposit base as of the end of 2022 was insured, but it said had a “low reliance on non-operational deposits” and that the 8-month weighted average maturity of its term deposit portfolio was healthy.
