Commerzbank: Substantial Value In Germany's 2nd Bank
Helix Investment Research • 25 Comments
Helix Investment Research • 25 Comments
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.
Mon, Mar. 7, 2:08 AM
- The head of Commerzbank's (OTCPK:CRZBY) retail unit is set become chief executive, succeeding one of the very last acting leaders of a European bank that tapped taxpayers during the financial crisis.
- Martin Zielke will take the reins from CEO Martin Blessing on May 1, a move that will see both of Germany's largest lenders change chief executives in less than a year.
- Commerzbank shares have plunged more than 30% over the past 52 weeks.
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.
Jun. 9, 2015, 1:09 PM
- Citing the reduced prospect of government support in a times of stress, S&P cuts the credit ratings of Deutsche Bank (DB -2.4%), Royal Bank of Scotland (RBS +0.7%), and Commerzbank (OTCPK:CRZBY +0.1%) to BBB+, three notches above junk territory. Barclays (BCS +0.2%) is downgraded to A-, one notch above the other three.
- For RBS, Barclays, and Commerzbank, it was a one-notch downgrade. For Deutshce, two notches.
- Source: WSJ
May 20, 2015, 8:03 AM
- Stil needing to free up capital to comply with tougher rules, Commerzbank (OTCPK:CRZBY) has put on the block $3.8B in loan portfolios backed by real estate loans in Eastern Europe, Turkey, and Scandinavia, as well as non-performing German mortgages.
- Among those showing interest are troubled loan specialists like Cerberus, Lone Star, and Oaktree (NYSE:OAK). A deal could be sealed in June.
- Source: Reuters
Mar. 12, 2015, 12:58 PM
- “When there was profit to be made, Commerzbank (OTCPK:CRZBY +0.2%) turned a blind eye to its anti-money laundering compliance responsibilities," says New York DFS chief Ben Lawsky as the bank settles charges for $1.45B, and agrees to fire certain employees and install an independent monitor.
- Separately, the Fed announces a $200M penalty against the German lender, and is investigating whether charges should be aimed at individuals at the bank who were involved in the illegal actions.
- Previously: Bloomberg: Commerzbank near settlement with DOJ (March 10)
Mar. 10, 2015, 8:37 AM
- Commerzbank (OTCPK:CRZBY) will pay nearly $1.5B to avoid criminal prosecution by settling with a number of government agencies this week, according to Bloomberg. Additionally, the NY Dept. of Financial Services will require the installation of a monitor and the resignation of some senior executives.
- At issue are investigations into sanctions violations and the bank's role in the accounting fraud at Japan's Olympus Corp.
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. 29, 2014, 3:32 PM
- Possibly threatening a settlement over a separate investigation into its doing business with sweethearts like Iran and Sudan into doubt, Commerzbank (OTCPK:CRZBY -5.5%) is facing an investigation by the Manhattan DA over violations of money-laundering laws.
- At issue are the dreaded lax controls for detecting and preventing money laundering, and the new probe, say sources, is threatening the settlement of other one. U.S. officials are reportedly considering combining the two investigations into one settlement - a move which would delay resolution and potentially add hundreds of millions of dollars in fines (the previous settlement number was reported to be in the area of $600M).
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.
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
Industry: Money Center Banks
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