Deutsche Bank sees pressure ahead on regulatory ratios

FRANKFURT Thu May 22, 2014 4:23am EDT

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FRANKFURT May 22 (Reuters) - Deutsche Bank co-Chief Executive Juergen Fitschen on Thursday said he expected new bank safety rules to further pressure the lender's regulatory ratios.

Fitschen said he expected one key measure, the core equity tier 1 capital ratio, to suffer under European rules requiring banks to employ prudential measures when valuing assets.

In the first quarter, Deutsche Bank's CET 1 ratio, a measure of a bank's ability to endure stress and market shocks, fell to 9.5 percent from 9.7 percent.

"We expect this ratio to come under further pressure - for example, from new regulations on prudential valuation," co-Chief Executive Juergen Fitschen in the text of a speech at the bank's annual general shareholder meeting.

Germany's largest bank launched an 8 billion euro ($11 billion) capital increase in a surprise move earlier this week after saying it was unable to retain enough profit to fortify its finances ahead of a regulatory health check slated for later this year. (Reporting by Thomas Atkins, editing by Arno Schuetze)

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