At the Annual General Meeting (AGM) on 1 June 2006, Deutsche Bank’s (XETRA: DBKGn.DE / NYSE: DB) shareholders renewed the authorization to buy back up to 10% of shares issued, replacing last year’s AGM authorization. As a result, the Management Board decided to conclude the current program and to continue share buybacks under the scope of the new buyback program with immediate effect.
Within the concluded share buyback program, which was launched in the third quarter 2005, a total of 35,846,000 shares, or 6.5% of the share capital as at the last AGM, had been repurchased at an average price of EUR 87.00, for a total consideration of EUR 3.12 billion. The current inventory in own shares within the buyback program amounts to 18.9 million shares, or 3.6 per cent of shares issued. This inventory is a result of the 33 million shares held at the time of the AGM in 2005 plus the repurchases of the concluded program. Thereof, 40 million shares were cancelled in February 2006 and roughly 10 million shares were used to hedge share awards.
Under the new program Deutsche Bank may buy back up to 10% of shares issued, i.e. up to 51,913,234 shares, by 31 October 2007. Deutsche Bank reserves the right to suspend the program in favor of strategic growth initiatives.
The buybacks will again be executed systematically by direct purchases of shares in the spot market and potentially through the use of derivatives. Deutsche Bank intends to use the repurchased shares not only to further reduce its share capital but also to support potential future equity-based compensation programs. The bank also reserves the option to use the repurchased shares for other purposes in accordance with the authorization granted at the Annual General Meeting.
All transactions will be managed in such a way that Deutsche Bank’s core capital ratio will not fall below the target range of eight to nine percent. The bank will regularly publish information on the progress of the buyback program. Details can be called up from the Internet at Deutsche Bank´s website under the heading “Share Information / Share Buy Back Program”.