[Photo: by Mario Andreya [M] N. Janitzki HB / global.handelsblatt.com]

Deutsche Bank successfully completed the $8.5 billion rights offering, and its capital prospects look quite rosy. About 80% of DB's shareholders exercised their rights, while 20% sold them - presumably to investors who then would buy the shares. Shares were priced at a 26% discount to the market price just prior to the start of the rights offering. 

It wasn’t too long ago that DB’s prospects looked somewhat dim. While investors and analysts were generally upbeat about the capital increase, many have questioned the bank’s ability to meet its cost-cutting and profit targets. And then there was the significant exodus of human resource talent that followed steep bonus cuts.

That said, Deutsche Bank CEO John Cryan has demonstrated a resiliency to bad news and a conviction to change course when Plan A does not seem to be working. For example:

• Cryan carried out the share sale, even though he had avoided such an option for much of last year.
• Cryan cut bonuses, as was necessary, knowing the short-term consequences; he was prepared to “survive the day in hopes of a better tomorrow.”
• Cryan accompanied the capital raising with management changes, promoting 2 senior executives - retail-banking chief Christian Sewing and finance chief Marcus Schenck - to new roles as deputy CEOs.

The prospects for Deutsche Bank are improving – at least for the moment.