It's Terrible : Deutsche Bank CFO - How new regs affect dividends

FRANKFURT
Preparing for new regulatory requirements is more important for Germany's largest commercial bank than returning to higher dividend payouts, Deutsche Bank AG's chief financial officer said in a newspaper interview
"At present, building up capital and preparing for the new regulatory requirements takes priority," Stefan Krause is quoted as saying by Frankfurter Allgemeine Sonntagszeitung
 "Once this has been done, we want to raise our dividend again, which we lowered during the crisis."
Under pending new regulatory capital and risk management requirements, known as Basel 3, global banks are required to build up substantial capital buffers by 2019, hampering their ability to pay out cash to shareholders
Deutsche Bank has paid a dividend to EUR0.75 a share in the past four years, substantially lower than the EUR4.50 and EUR4.00, respectively, it paid out for 2007 and 2006
Deutsche Bank will cut 250 billion euros ($330.5 billion) from its balance sheet to improve its capital position, Mr. Krause said, confirming prior plans
Mr. Krause also said the bank believes it has made sufficient provisions for the numerous legal disputes it is facing on both sides of the Atlantic, adding that legal matters in the U.S. are often settled out of court at a lower sum