Commerzbank: Substantial Value In Germany's 2nd Bank
Helix Investment Research • 25 Comments
Helix Investment Research • 25 Comments
Thu, Jun. 30, 5:34 PM
- Commerzbank (OTCPK:CRZBY -0.2%) will cut more than 100 jobs from its New York office amid an investment banking slowdown, The Wall Street Journal says.
- Moves to bundle activities in "centers of competence" have now come to North America, the company said.
- The cuts will mean that the German lender will outsource some clearing, and stop securities lending and its structured finance business in the U.S., while keeping dollar-denominated loans and bonds along with risk-management solutions and equity market access.
Thu, Jun. 9, 3:18 AM
- Lenders are rebelling against their central banks' negative interest rate policies, with reports suggesting Commerzbank (OTCPK:CRZBY) going so far as to weigh storing billions of euros in vaults rather than keeping them with the ECB.
- Some savings banks in Bavaria are also exploring storing physical notes and Munich Re said this year it would experiment with holding at least €10M of reserves in cash to see whether or not it was practical.
Tue, May 3, 8:56 AM
Tue, May 3, 2:54 AM
- HSBC's first-quarter earnings fell 18.2%, but beat forecasts, as the British bank grappled with its Asia strategy.
- Profits also slumped at UBS, as its wealth-management business suffered and its investment bank failed to pick up the slack.
- BNP Paribas (OTCQX:BNPQF) reported a jump in net income despite difficult markets, following lower provisions against bad retail loans and a debt valuation adjustment.
- Market turbulence and low interest rates dragged down the earnings of Commerzbank (OTCPK:CRZBY), which posted a 52% drop in Q1 net profit.
Fri, Feb. 12, 6:26 AM
Fri, Feb. 12, 4:05 AM
- Commerzbank (OTCPK:CRZBY) returned to profit in Q4 and announced its first dividend since 2007 after revealing lower bad loan provisions.
- A raft of new model sales offset a Russia write-down for Renault (OTCPK:RNLSY) as the French carmaker logged a 50% jump in full year profits.
- Rolls-Royce (OTCPK:RYCEY) slashed its final dividend for 2015, but continued its restructuring efforts with a 20% cut to the top two layers of senior management.
Dec. 25, 2015, 4:50 AM
- Commerzbank (OTCPK:CRZBY) is suing four banks in the U.S., claiming that they failed to properly monitor billions of dollars in toxic MBSs acquired by the German lender before the 2008 financial crisis.
- BNY Mellon (NYSE:BK) and units of Deutsche Bank (NYSE:DB), Wells Fargo (NYSE:WFC) and HSBC (NYSE:HSBC) were named in the lawsuits.
Nov. 2, 2015, 2:24 AM
- Commerzbank (OTCPK:CRZBY) Chief Executive Martin Blessing has rejected an offer by the bank's supervisory board to extend his contract beyond October 2016, becoming the latest CEO to join an unprecedented wave of management changes at Europe's banks.
- "It is now time for me to embark on a new chapter in my professional life," he said in the statement.
- Blessing, who became CEO in 2008, was given the task of leading the bank out of the financial crisis and subsequent €18.2B bailout.
Jan. 9, 2015, 7:54 AM
- More than half of the €7.5B in newly issued Santander (NYSE:SAN) stock was purchased by U.S. investors, reports the FT, with about 25% bought by U.K. owners.
- The bank issued 1.214B shares at £6.18 each as new executive chairman Ana Botin quickly broke ranks with her late father's strategy just four months after replacing him atop the company.
- The ADRs are lower by 4.5% premarket after yesterday's 7% decline.
- Now that Santander has joined Deutsche Bank in raising capital, analysts turn their attention to the next dominoes. High on the list: BNP Paribas (OTCQX:BNPQY), Societe General (OTCPK:SCGLY), Credit Suisse (NYSE:CS), Commerzbank (OTCPK:CRZBY), and Credit Agricole (OTCPK:CRARY).
Dec. 12, 2014, 1:58 AM
- Commerzbank (OTCPK:CRZBF, OTCPK:CRZBY) is nearing a more than $1B settlement with U.S. authorities over alleged violations of U.S. sanctions and anti-money laundering laws.
- The settlement is in the final stages of negotiations and could be announced by the end of the year.
- It was reported in September that Commerzbank was close to an agreement with the U.S., but a lower $650M settlement figure was quoted at the time.
Sep. 4, 2014, 1:49 AM
- Commerzbank (OTCPK:CRZBF, OTCPK:CRZBY) is closing in on a settlement with U.S. authorities over its dealing with countries under U.S. sanctions, including Iran and Sudan.
- The bank is expected to announce the deal within the month and is expected to pay approximately $650M to resolve the probes.
- New York's Department of Financial Services is likely to get the bulk of the settlement, receiving $300M.
Jul. 10, 2014, 2:41 AM
- Commerzbank (CRZBF, CRZBY) is now expected to pay between a $600-$800M settlement for its money transfer operations which evaded U.S. sanctions, CNBC reports. The bank is accused of transferring money on behalf of companies in Iran and Sudan.
- It was previously reported that the bank would have to pay more than $500M.
- Over the past five years, American authorities have found more than half a dozen foreign banks guilty of sanctions violations.
- The U.S. is still probing UniCredit (UNCFF), Credit Agricole (CRARY), Societe Generale (SCGLF), and Deutsche Bank (DB).
Jul. 8, 2014, 3:36 AM
- U.S. authorities are starting to discuss settlement options with Commerzbank (CRZBF, CRZBY) and Deutsche Bank (DB) for their money transfer operations which evaded U.S. sanctions, Reuters reports. The banks are accused of transferring money on behalf of companies in Iran and Sudan.
- Commerzbank, is likely to settle with a deferred prosecution agreement that would suspend criminal charges in exchange for a financial penalty and other concessions. The NYT reports the bank could likely pay at least $500M, although the the timing of the deal is still unclear. The bank set aside $1.3B at the end of 2013 as a provision for litigation risks, including a possible U.S. investigation.
- The new litigation comes after last week's BNP Paribas settlement for $9B.
May 20, 2014, 5:06 AM
- JP Morgan (JPM) and private-equity firm Lone Star are in the final stages of acquiring a portfolio of Spanish property loans from Germany's Commerzbank (CRZBF) for €3.7-3.9B (up to $5.4B), Reuters reports.
- The assets comprise €1B of non-performing debt and €3.3B of performing loans backed by office blocks and shopping centers.
- Should the deal go ahead, JPMorgan and Lone Star would be following other major foreign investors - particularly Blackstone - into a property sector that is apparently starting to recover from a massive bust that occurred during the financial crisis.
Mar. 10, 2014, 3:44 PM
- German banks - including Deutsche (DB) and Commerzbank (CRZBF, CRZBY) - will not have to hand over details of mortgage loans as part of the ECB's asset quality review, reports the FT.
- The German housing market is its own bird, with borrowers often having higher down payments and locking in rates for at least 10 years. The home ownership rate is just 44% compared to Spain at 83%. Because of the lack of activity, German banks traditionally value their loans when the mortgage is taken out, as opposed to other banks who more frequently update their portfolios.
- New rules will force banks to revalue loans which haven't been independent assessed in over a year, essentially meaning a costly national revaluation in Germany. It is this the German bankers lobbied against and it appears they've successfully made their case.
- German real estate has gotten perky over the past few years, with the Bundesbank naturally sounding warnings, but private economists note the gains have been modest by true bubble standards.
Jun. 18, 2013, 6:53 AM
Commerzbank is Germany's third-largest private-sector bank with more than Euro444.9 billion in total assets as of Dec 31 2005. Co.'s domestic operations include a network of over 800 branches. Internationally, Co.'s activities are concentrated in Europe and other key markets, including the U.S.... More
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