STOCKS NEWS EUROPE-Dt Bank falls on report of possible cap hike

Deutsche Bank (Xetra: DBK.DE - news) shares fall 2.4 percent in early trading on Friday after a newspaper reports the lender is considering whether to raise as much as 5 billion euros ($6.91 billion) in capital this year to cope with European stress tests and new capital rules.

Handelsblatt newspaper cites sources at the bank as saying that no decision has been made but says Deutsche Bank's Co-Chief Executives Juergen Fitschen and Anshu Jain are thinking of a "Plan B" to give an extra fillip to the bank's efforts to close the gap with international rivals in terms of capital strength.

"Deutsche Bank shares will be an underperformer unless the facts are on the table," says a Frankfurt trader.

"So far, the bank always denied that it may need a cap hike at all," the trader adds.

Deutsche Bank managed to boost its core tier one ratio - a closely watched measure of balance sheet strength - to 9.7 pct at the end of 2013, but Germany's biggest lender still faces major litigation costs around the world linked to the financial crisis as well as tough new capital rules that will put pressure on the ratio as they come into force.

Deutsche Bank, which is due to release first quarter earnings results on Tuesday, declined to comment on the report.

Reuters messaging rm://jonathan.gould.thomsonreuters.com@reuters.net

Reuters messaging rm://daniela.pegna.thomsonreuters.com@reuters.net