Deutsche Bank surges as share issue cheers investors 30 April 2013 Last updated at 11:44 Deutsche Bank's shares rose almost 7% in early trading, as its decision to issue shares to boost its capital reserves and strong first-quarter results cheered investors. Germany's largest bank has issued 2.96bn euros (£2.9bn) worth of stock in a bid to reassure investors over the strength of its balance sheet. The new shares are part of Deutsche's plans to raise 4.9bn euros in total. Its pre-tax profit rose 28% to 2.4bn euros from 1.9bn euros a year ago. The bank said it would also sell 2bn euros of debt. Deutsche Bank, Germany's biggest bank based on market capitalisation, has been under pressure from regulators to increase its capital reserves in order to give it a bigger buffer against potential crises such as the 2008 global financial crisis. Until now, Deutsche has resisted calls to issue fresh shares in order to do so, because it would dilute its existing equity. Its share sale will increase the number of existing shares by about 10%. However, Deutsche Bank's co-chief executive officer, Anshu Jain, said the decision to raise fresh funds followed meetings with regulators and shareholders, who made it clear that resolving the capital issue needed to be a "top priority." Mr Jain said that the bank decided on the capital increase so it could meet its goals for stronger financial reserves "in one fell swoop." As a result of the capital increase, Deutsche says its tier-one capital - the level of top quality assets held in reserve as a buffer against financial troubles - will increase to 9.5%, up from 8.8% at the end of March. The ratio puts it comfortably ahead of new rules on capital requirements, due to be bought in by 2019 under the international agreement known as Basel III. "We are now among the best capitalised banks in our global peer group," added Mr Jain. Mr Jain said that the bank's bigger capital cushion would open the door to higher dividend payments. Since 2009, Deutsche Bank has kept dividend payments steady at 0.75 euros. Profits surge The plans to issue fresh capital came as Deutsche posted strong first-quarter results, driven by aggressive cost cutting. Its pre-tax profit of 2.4bn euros easily beat a consensus analyst forecast of 1.7bn euros, despite a slight drop in revenues at its investment bank. The number of employees at Deutsche declined by 425 in the first quarter compared with a year earlier. Since July 2012, it has laid off 1,500 staff at its investment bank. Deutsche Bank said it aims to save 1.6bn euros this year.