Deutsche Bank AGNYSE
Deutsche Bank - The Best Value In Banking?
Tim Travis • 38 Comments
Tim Travis • 38 Comments
Thu, Oct. 20, 9:25 AM
- A report in German media says Qatar, the Abu Dhabi SWF, and Chinese investors would be willing to boost their stake in Deutsche Bank (NYSE:DB) to 25% should the lender need to raise capital.
- It's not the first time over the past few weeks this sort of chatter has arisen, and it surely won't be the last.
- Nevertheless, the news provided for a nice midday spike in Deutsche's shares in Frankfurt trade. They've backed off a bit since, but remain higher by 1.8% on the session. The ADRs here are up 1% premarket.
Wed, Oct. 19, 8:19 AM
- "We're all in a long-term game," Alasdair Warren, Deutsche Bank's (NYSE:DB) head of corporate and investment banking for EMEA tells CNBC. "If you're going to be globally relevant you have to have a meaningful presence in the U.S."
- Warren's statement follows reports from earlier this week suggesting Deutsche was considering cutting back its U.S. investment banking operation as it looks to conserve capital.
- Speaking to the idea that capital concerns could cause a spiral in which talent and then clients abandon Deutsche, Warren says compensation is an industry issue, and banking employees everywhere are going to have to recalibrate their pay expectations.
- As for clients, what Warren's hearing is that they want a "credible alternative" - particularly in Europe - to what's increasingly becoming a U.S.-dominated field.
Sun, Oct. 16, 6:16 AM
- Deutsche Bank (NYSE:DB) may be forced to shrink its U.S. activities as part of a deal to settle litigation over toxic residential MBSs with the DOJ, but "must clarify one or two things" before an agreement can be struck.
- According to the report from Welt am Sonntag, Germany's largest bank will probably give up part of its U.S. investment banking business.
Fri, Oct. 14, 2:41 PM
- It is "inconceivable for the state to take a stake in Deutsche Bank (DB +1%)" should it opt for a capital raise, says a government source who attended a closed-door meeting with a small group of lawmakers, aides to Angela Merkel, and senior Finance Ministry officials.
- The bank is haggling with the U.S. over a mortgage-related fine that's been floated to be as high as $14B. Meanwhile, Deutsche has just about $6B in litigation reserves.
Thu, Oct. 13, 6:31 AM
- Deutsche Bank (NYSE:DB) is implementing a company-wide hiring freeze as CEO John Cryan seeks to lower costs and shore up investor confidence, Bloomberg reports.
- The bank is struggling to reverse a slide in shares that eroded almost half of its market value this year, amid concerns about mounting legal costs after the DOJ requested $14B to settle a probe into faulty securities.
- DB -2.6% premarket
Wed, Oct. 12, 2:23 PM
- Deutsche Bank (DB +0.2%) agrees to pay $9.5M to settle SEC allegations that it failed to properly safeguard non-public information generated by its research analysts.
- The SEC highlighted a securities law violation related to a high-profile case from earlier this year in which it accused a Deutsche Bank Securities analyst of maintaining a Buy rating on Big Lots shares while telling clients privately that he thought they should sell.
- DB also encouraged equity analysts to communicate often with its trading desks and clients, and did not have policies and procedures in place to prevent disclosure of market-moving information, the SEC said.
Mon, Oct. 10, 2:45 PM
- A year into CEO John Cryan's plan to slash costs and exit non-core businesses, not a whole lot has gotten done at Detusche Bank (DB +2.6%). To give one example, headcount today stands at more than 101K vs. 98.6K a year earlier.
- Another example: Total assets at the bank as of June 30 stood at €1.8T, up 6% year-over-year.
- "There will be some tweaks, likely decided on this quarter," a source tells Reuters. "It will hit areas where the bank is making no money."
Mon, Oct. 10, 4:07 AM
- Deutsche Bank (NYSE:DB) CEO John Cryan wasn't able to negotiate a settlement with the Justice Department during a meeting in Washington last week, sources told Germany's Bild newspaper.
- The two parties are planning to resume talks, however, and Cryan expects U.S. authorities to scale back their initial $14B request.
- DB shares are down 3% in Frankfurt. They have dropped about 48% this year.
Sun, Oct. 9, 3:53 AM
- Deutsche Bank (NYSE:DB) is continuing to cut back the size of its derivatives book, which is not as risky as investors may believe, Chief Risk Officer Stuart Lewis told Welt am Sonntag.
- "The €46T figure sounds gigantic... but reflects only the notional value of the contracts, while the bank's net exposure to derivatives is far lower, at around €41B.
Fri, Oct. 7, 12:14 PM
- Qatar first opened a 6.1% stake in Deutsche Bank (NYSE:DB) in 2014, and boosted that holding to just under 10% earlier this year. While down billions on that bet, Qatar is expected to stand behind the bank, according to an earlier report today.
- Now hitting the wires is a report that Qatar is thinking about raising its stake in Deutsche to as high as 25%.
- Shares +2.4%
Fri, Oct. 7, 3:38 AM
- Deutsche Bank (NYSE:DB) is working on a public listing of its asset management division to rebuild its capital buffers, FT reports, amid pressure to shore up its balance sheet.
- The German lender may also be looking at external financing. A report in Handelsblaat yesterday suggested that several German blue-chip companies may be prepared to offer capital should Deutsche Bank be crippled by a U.S. mortgage fine.
Thu, Oct. 6, 4:11 PM
- The heads of several German blue-chip companies have been discussing the state of Deutsche Bank (DB -0.4%), and may be prepared to offer up capital should the bank be crippled by a U.S. mortgage fine, reports Handelsblatt.
- The amount being discussed is in the low, single-digit billion euro range, according to the paper's sources.
- Both Deutsche and the government are aware of the tentative plans.
Thu, Oct. 6, 8:21 AM
- The European banks have gone "from value trap to value trade," says the team at Citigroup, noting the group is the worst-performing region/sector out of 285 tracked over the last 10 years.
- Fundamentals still aren't great, they acknowledge, but bank valuations on both a relative and absolute basis make them a buy.
- ETF: EUFN
- Individual names: DB, SAN, CS, UBS, ING, BBVA
Thu, Oct. 6, 4:51 AM
- One of Deutsche Bank's (NYSE:DB) problem's might have gone away. BAFIN, the German financial regulator, has found no evidence to date that the lender violated rules on money laundering in Russia.
- The stakes are still high for Deutsche Bank as German government officials quietly meet with U.S. regulators in Washington to broker a deal that would reduce the DOJ's $14B settlement.
Wed, Oct. 5, 5:58 AM
- Bond investor Jeff Gundlach says Deutsche Bank's (NYSE:DB) woes highlight the impact of the negative-interest-rate policy in Europe on the region’s lenders.
- “You cannot save your faltering economy by killing your financial system and one of the clear poster children for this is Deutsche Bank’s stock price,” he said. “If you keep these negative interest rate policies for a sufficient future period of time you are going to bankrupt these banks.”
- Europe’s banks have seen their value shrink by about $280B in 2016; DB has lost almost half its market value.
- “Deutsche Bank will be supported by Germany if push comes to shove,” he says. “But what about Credit Suisse (NYSE:CS), which has shown a similar decline in stock price? Who’s there to bail them out?”
- Gundlach also says that even the Fed, which has not cut rates below zero, is seeing signs that its policies aren’t working.
Wed, Oct. 5, 2:34 AM
- Deutsche Bank (NYSE:DB) closed higher yesterday, extending gains into the U.S. ADR session.
- The advance followed a report from German newspaper Platow Brief, suggesting the bank was considering scrapping bonuses and raising fresh capital, and was aiming for a $4B-$5B settlement by the end of October.
- That's around a third of the amount originally demanded by the DOJ, which helped send Deutsche shares to a record low last week.