FirstRand eclipses Deutsche Bank
FirstRand’s market capitalisation surpasses that of ailing German bank, whose shares have plummeted in 2016
FirstRand had overtaken Deutsche Bank by market capitalisation on Monday, following the German bank’s spectacular share price decline in the wake of full-year losses and, more recently, the prospect of a $14bn fine from US authorities. On Monday, FirstRand’s market cap was at $19.24bn, placing it ahead of Deutsche Bank, which had a market cap of $19.2bn on Germany’s blue-chip stock index, the DAX. Shares in Germany’s largest bank, which posted a £6.8bn net loss for the year to December 2015, have given up more than 40% in 2016 on major exchanges. "Deutsche Bank shares slumped to levels last seen three decades ago amid concerns that the government would not support [it], resulting in a possible rights issue, diluting existing shareholders," said Izak Odendaal, an investment strategist at Old Mutual Wealth. Deutsche Bank faces a $14bn fine from the US justice department to settle civil claims connected to mis-selling of mortgage-backed securities to investors in 2005-07.
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