(Adds quotes from shareholders' meeting)
By Thomas Atkins and Arno Schuetze
FRANKFURT, May 22 (Reuters) - Deutsche Bank AG defended plans to raise 8 billion euros ($11 billion) in equitycapital on Thursday, as its top executives faced angry investorsat the annual shareholders' meeting, less than a week afterannouncing the surprise plan.
Germany's largest bank launched the share issue only weeksafter first hinting it was unable to retain sufficient profitsto fortify its finances ahead of the industrywide health checksdue to be conducted by European regulators this year.
"We know some of you are sceptical. Some of you may ask, whyshould we trust this team to deliver?," co-Chief Executive AnshuJain told thousands of shareholders at Frankfurt's conventioncentre, while outside the building various protesters dressed asclown fish and pigs and others riding a cardboard tank, accusedthe bank of unethical behaviour.
"You should trust us because the transformation of DeutscheBank is working, because we are doing what we said, step bystep, because we're strengthening capital and reducing risk", hesaid.
"In the banking industry there will be winners and losers,and we are systematically positioning Deutsche Bank to be awinner," he added.
Chairman Paul Achleitner told the meeting the bank aimed tomake staff and clients "proud of Deutsche Bank again".
Jain, who has been portrayed by some shareholders in thepast as being a detached 'Anglo-Saxon' investment banker withlittle knowledge of Germany's social-market economy, for thefirst time addressed the bank's owners at length in German.
"Both in our business environment and within Deutsche Bank some challenges were tougher than we anticipated," theIndian-born British citizen told the meeting, attended by some4,800 investors.
Deutsche Bank also came under attack over its share price,which has fallen by about 15 percent in the past 12 months,while the Stoxx Europe 600 banking sector index is up 13percent.
"When is this nightmare finally going to end?" fund managerIngo Speich from Union Investment said. "Stockholders andinvestors are losing their patience with legal battles, finesand breaches of corporate governance and compliance.
"Much investor trust has been wasted. The capital hike isnot helping," Speich said.
LACK OF PROGRESS
Shareholder approval is not required for the capital raisingbut some investors have voiced anger over the issue and with alack of progress on resolving a long list of investigations thathas dogged the bank since the 2008-2009 financial crisis.
The bank said it still faces around 1,000 major lawsuitsthat have a value of over 100,000 euros.
"Our Deutsche Bank today is a huge law office with bankingoperations attached," Klaus Nieding from shareholderorganisation DSW said.
The bank has already had to pay out more than 5 billioneuros ($6.9 billion) over the past two years in settlements andfines stemming mostly from the financial crisis, and has setaside another 1.8 billion euros in anticipation of more painthis year.
BONUSES
But management has pointed to "tectonic shifts" that haveopened up opportunities in investment banking. European rivalsincluding UBS and Barclays have withdrawnfrom areas such as bond trading, where Deutsche believes it cansucceed as a big European player on a stage dominated by thelikes of Goldman Sachs and JPMorgan.
Separately, shareholders were expected to approve a proposalpermitting senior staff to receive bonuses worth twice base pay,something the bank says is critical to remaining a competitiveemployer and to keeping its costs flexible.
European Union rules say bankers' bonuses cannot exceedtheir annual fixed salary, or twice that if shareholdersapprove, to curb the sort of excessive risk-taking blamed forthe financial crisis.
The bonus cap is one of the most high-profile rules approvedby the 28-country bloc following public anger over high pay atbanks, many of which were propped up by taxpayers in the crisis.
DSW's Klaus Nieding said that compensation for theinvestment banking division in 2013 totalled 4.5 billion euros,with almost half of that being for bonus payments.
"If that's still not enough for people, especially for theinvestment bankers ... then let them move on, Mr. Jain!" hesaid. (Editing by David Holmes and Greg Mahlich)
Barclays (BARC)