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Today, 9:15 AM
Yesterday, 2:26 PM
- Amid growing concerns about the bank's financial health, the FT reports Deutsche Bank (DB -2.4%) is "considering buying back several billion euros of its debt." Shares have pared their Tuesday losses following the report.
- The FT adds the buyback is expected to focus on senior bonds, of which Deutsche had €50B ($56.5B) as of September. Contingent convertible bonds, the subject of much recent investor concern, aren't expected to be involved.
- Bank debt worries have led to surging CDS prices in recent weeks. The FT states a CDS for Deutsche's 5-year senior euro debt was trading at 242 bps today, its highest level since the end of the 2011 eurozone crisis.
- Earlier: Deutsche CEO says company is "rock-solid"
- Yesterday: Deutsche Bank at record low as fear over European banks grows
Yesterday, 8:31 AM
- Deutsche Bank (NYSE:DB) co-CEO John Cryan seeks to reassure employees about the bank's finances, a day after shares sank nearly 10% amid investor concerns about the bank's capital position, but shares -2.3% premarket.
- DB "remains rock-solid" with a strong capital and risk position, Cryan says, while adding that "we will almost certainly have to add to our legal provisions this year but this is already accounted for in our financial plan."
- "On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital," Cryan says; analysts have cast doubt on whether DB could make optional coupon payments on its CoCo bonds in 2017 if losses in 2016 turned out worse than expected.
Mon, Feb. 8, 2:24 PM
- It is the European banks and contagion concerns that are freaking out the markets today - not just the Fed, China and crude oil - according to David Rosenberg, noting that some of the European banks are trading at 2008 crisis levels after the group has tumbled 18% YTD vs. 11% for the STOXX 600 index.
- European financial firms are taking a beating amid fears of "a chronic profitability crisis that makes it impossible for banks to build up barely-adequate capital bases," WSJ reports.
- Deutsche Bank (DB -9.8%) is down another ~10%, bringing its YTD loss to nearly 40% while its valuation has fallen to ~30% of book value, and its credit default swaps spiked to their highest levels since 2012.
- News of major withdrawals out of Credit Suisse (CS -4.2%) caused its shares to sink 11% last week, hitting a 24-year low, and Santander (SAN -6.2%), BBVA (BBVA -5.4%), and UniCredit (OTCPK:UNCFF -5.5%) are down to lows seen during the last eurozone financial crisis.
- "Oil and the flatter yield curve alone do not explain the 12% plunge we have seen in S&P Financials so far this year," Rosenberg says, adding that BofA (BAC -6.1%), Citigroup (C -6.2%) and Wells Fargo (WFC -3.5%) all briefly touched 52-week lows last week - "an ominous signpost."
- ETFs: XLF, FAS, FAZ, UYG, VFH, PSP, IYF, EUFN, BTO, IPF, IAI, IYG, SEF, FNCL, FXO, PFI, IXG, PEX, RYF, FINU, KCE, RWW, KBWC
- Earlier: Markets extend two-day rout; gold gets 3% boost
Thu, Jan. 28, 12:03 PM
- "The bank I would like to run at the moment is Wells Fargo," says a glum Deutsche Bank (DB -4.1%) CEO John Cryan after the bank reported a $7.4B loss last year and canceled management bonuses.
- "I would love to make 400 basis points in retail banking and have a relatively easy life. Unfortunately there are lots of things I wish for that are not going to come true ... "Sometimes I go home in the evening and I say to my wife I wish some people would actually think I had some talent for running a company and not just cleaning it up."
- For Q4, the bank posted a €1.15B pretax loss after taking €1.2B in litigation charges, and Cryan predicts more such costs for the next two years.
- "Once we have the bank set up, its cost bases, its capital in a good place it should be fun running a company like this."
Thu, Jan. 28, 5:53 AM
Thu, Jan. 28, 4:15 AM
- Deutsche Bank (NYSE:DB) -1% premarket after posting a full-year loss of €6.8B, as writedowns, litigation charges and restructuring costs took their toll.
- Electrolux (OTCPK:ELUXY) slumped to a Q4 loss after costs from its failed GE deal weighed on results.
- A strong dollar hit purchasing costs at H&M (OTCPK:HNNMY), resulting in a set of relatively lackluster earnings.
- Roche (OTCQX:RHHBY) reported 5% fall in full-year net income as the strong Swiss franc countered gains from the company’s diagnostics and cancer treatment units.
Mon, Jan. 25, 2:50 PM
- "For staff, 2015 will be very likely one of the worst years ever," a Deutsche (DB -6%) manager tells Reuters, which reports sharp 2015 bonus cuts planned amid the bank's record loss for the year.
- Employees won't be notified of bonuses until March, but have been told payout pots for individual divisions will be cut by 25-30%.
- Compensation had been mostly unchanged for the last five years, but newish CEO John Cryan is on record as saying bankers get paid too much, and the lender is expected to record a loss of nearly €7B for 2015.
Thu, Jan. 21, 9:16 AM
Thu, Jan. 21, 5:43 AM
- Deutsche Bank (NYSE:DB) -7.1% premarket after warning it would take further litigation charges in Q4, pushing its bottom line into the red.
- With an additional €1.2B in legal costs, Germany's flagship lender expects to report its first full-year loss since 2008, equivalent to €6.7B on a net basis.
- Previously: Deutsche Bank to post Q4 loss on litigation charge (Jan. 20 2016)
Wed, Jan. 20, 3:22 PM
- The bank says it will take another €1.2B in litigation charges in Q4, thus pushing the bottom line into the red.
- For the full year, revenue should be about €33.5B, with a net loss of €6.7B thanks to those Q4 legal costs, not to mention another €5.2B in legal charges taken in Q3, plus €1B in restructuring and severance charges.
- Alongside the broader markets, Deutsche (NYSE:DB) is well off the session low, now down just 3.9%.
Tue, Jan. 19, 3:20 AM
- Already troubled by lawsuits and official investigations, Deutsche Bank (NYSE:DB) is facing another challenge - it's about to be sued in British court for using high-speed trading software.
- That lawsuit asserts the lender used a platform known as Autobahn to take advantage of millisecond changes in exchange rates to give clients worse prices than they were entitled to.
- Deutsche Bank has denied the claims, saying "we disagree with the allegations and will be defending ourselves in court."
Thu, Jan. 7, 8:44 AM
- It's the third upgrade this month for Deutsche Bank (NYSE:DB) after Barclays' Jeremy Sigee boosts to Overweight from Equal Weight, arguing the stock is overly discounted and equity raises are no longer necessary.
- JPMorgan's Kian Abouhossein and Amit Ranjan - who rate Deutsche an overweight - also believe share count dilution risk is off the table.
- Newish CEO John Cryan is trying to avoid more capital raises by selling assets, cutting costs, and (likely) suspending the dividend.
- Not all are convinced, including Citi's Andrew Coombs, who calls a capital raise this year "highly probable."
- Deutsche is lower by 36% since its early-April 2015 peak. It's down 2.5% premarket amid a sizable global stock selloff.
Thu, Jan. 7, 4:34 AM
- European banks are set to cut back equities trading and research teams in Asia, as global cost-cutting reaches a region where a drop in Chinese trading volumes and local competition have hit profits.
- Bankers and headhunters told Reuters that BNP Paribas (OTCQX:BNPQF), Deutsche Bank (NYSE:DB) and Barclays (NYSE:BCS) are among lenders likely to slash their workforce, setting the tone for a tough 2016.
- Ten of Europe's largest banks already announced 130K job cuts since last June.
- Previously: How many bank jobs vanished since the financial crisis? (Dec. 31 2015)
Dec. 31, 2015, 6:32 AM
- Announced cuts in the fourth quarter totaled at least 47K, following 52K lost jobs in the first nine months of 2015. That would would put the aggregate figure since 2008 at about 600K, according to Bloomberg.
- Staff reductions at some of the world's biggest banks are still far from over. Notables: Deutsche Bank (NYSE:DB) plans to slash 26K positions by 2018, UniCredit (OTC:UNCFY) will eliminate about 18,200 positions, and Citigroup (NYSE:C) plans to eliminate at least 2,000 more jobs next year.
Dec. 28, 2015, 9:51 AM
- Deutsche Bank (DB +0.1%) has agreed to sell its 19.99% stake in China's Hua Xia Bank to PICC Property and Casualty for between 23B-25.7B yuan, depending on the exchange rate.
- "This sale will strengthen the capital position of Deutsche Bank and we will make further progress on implementing our strategy," CFO Marcus Schenck said.
- If the transaction is approved by regulators, it will have a "positive financial impact," and would improve DB's common equity tier 1 capital ratio as of the end of September by between 30 and 40 basis points.
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