Deutsche Bank informed about the Postbank takeover case.
In a hearing on April 26, 2024, the Higher Regional Court of Cologne assessed the claims of some former Postbank shareholders that a higher bid price should have been paid in relation to Deutsche Bank’s voluntary takeover offer on October 7, 2010. During the hearing, the Court indicated that it might consider valid evidence of these claims in a later decision.
While Deutsche Bank continues to strongly disagree with this assessment, the court’s pronouncements will affect Deutsche Bank’s assessment of the likelihood of future outflows, resulting in a legal provision in the second quarter of 2024.
This provision will affect Deutsche Bank’s second quarter and full-year profitability and capital ratios. The estimate of the total amount of all claims, including accrued interest, is approximately €1.3 billion.
On a pro forma basis as at 31 March 2024, the impact of the full provision on the bank’s Common Equity Tier 1 (CET1) ratio is estimated to be approximately 20 basis points, resulting in a pro-forma CET1 ratio of 13.25%. On the same basis, the leverage ratio would have been 4.42% on March 31, 2024.
Given the complexity of the legal issues and the recent state of court filings, Deutsche Bank’s management will continue its analysis of the legal arguments and the potential impact on the financial statements. In general, management does not expect a significant impact on the bank’s strategic plans or financial goals.