Deutsche Bank - The Best Value In Banking?
Tim Travis • 37 Comments
Tim Travis • 37 Comments
Deutsche Bank Is A Good Buy If You Believe In Europe
Ashleigh Rogers • 16 Comments
Ashleigh Rogers • 16 Comments
Tue, Mar. 22, 4:57 AM
- Moody's Investors Service has placed Deutsche Bank's (NYSE:DB) ratings on review for possible downgrade, citing rising execution hurdles as the bank tries to stabilize profits over the next three years.
- The move comes days after the German lender warned that volatile financial markets in the first quarter, normally a strong season for banks, posed a challenge for the entire sector.
- Deutsche Bank also scrapped board bonuses this year after posting a record loss for 2015.
- DB -3.1% premarket
Thu, Mar. 17, 11:36 AM
- Citing a lack of success in turning the bank around, Sheikh Hamad Bin Jassim Bin Jabor Al-Thani of Qatar - an owner of 3% of Deutsche Bank (DB -1.7%) - will not back Chairman Paul Achleitner for a second term, according to Manager Magazin.
- Achleitner took over the top spot on board in 2012 and is serving a five-year term.
- Though unhappy, the al-Thani will not attempt to unseat Achleitner at the annual meeting in May.
- Deutsche posted a record loss this year, and it was Achleitner who brought in John Cryan as CEO last summer, asking for two years to get rid of legacy issues and let the new strategy begin to pay off.
Wed, Mar. 16, 9:15 AM
Wed, Mar. 16, 8:02 AM
- Speaking at a conference in London, Deutsche Bank (NYSE:DB) boss John Cryan says the lender will likely post a "small loss" this year as restructuring continues.
- Consensus forecasts call for the bank to post a profit of €0.344 in 2016.
- Source: FT
- The stock's lower by 5.15% in Frankfurt trading.
- See also: Credit Suisse tumbles as management pulls out of conference (March 16)
Fri, Mar. 11, 12:49 PM
- While the big Wall Street banks are struggling with slides in fixed-income revenues, business is booming at BlackRock (NYSE:BLK) and other ETF providers offering credit-related products.
- The banks, writes Lisa Abramowicz, want some of that business back.
- The issue for banks are new regulatory and capital rules which make it harder to hold big inventories are paper investors want to trade. Meanwhile, the ease of moving in and out of vehicles like BlackRock's $25B IG bond fund (NYSEARCA:LQD) or its $16B junk-bond fund (NYSEARCA:HYG) have led to surging volumes, even as the individual securities underlying those ETFs are more difficult to trade.
- Banks are responding with the total-return swap in which an investor pays a fee to a counterparty who promises delivery of the total gain on a basket of certain debt. These instruments are not only quickly traded without having to deal with the underlying securities, but are pegged to some of the same indexes as the biggest credit ETFs. Citigroup (NYSE:C) just became the eight dealer in these derivatives (joining GS, BAC, JPM, MS, CS, DB and OTCQX:BNPQY), which are being pitched by banks as an alternative to ETFs.
Fri, Mar. 11, 4:55 AM
- Deutsche Bank (NYSE:DB) has warned that volatile financial markets in the first quarter, normally a strong season for banks, posed a challenge for the entire sector.
- "Deutsche Bank is no exception to this," Chief Executive John Cryan said in the lender's annual report, echoing recent comments from other investment banks.
- The remarks came as Deutsche cut its bonus pool by 11% after rising legal costs hurt earnings in 2015.
- DB +5.2% premarket
Thu, Mar. 10, 8:58 AM
- The ECB staff has cut its growth and inflation projections, and sees risks skewed to the downside, says Mario Draghi in opening remarks at his press conference.
- The central bank earlier fired its bazooka, cutting rates, boosting QE, and announcing four new LTRO operations.
- Staff sees inflation at just 0.1% this year vs. its previous forecast of 1%. For 2017, inflation is now seen at 1.3% vs. 1.6% previously.
- Rates will remain at present or lower levels for "an extended period," says Draghi.
- The banks are partying: Deutsche Bank (NYSE:DB) +5%, Santander (NYSE:SAN) +4.9%, Credit Suisse (NYSE:CS) +1.8%, UBS +1.7%, ING +5%, BBVA +5% premarket
- ETF: EUFN
- Previously: Stocks jump higher after ECB unloads bazooka (March 10)
Thu, Mar. 3, 8:37 AM
- The global economy has been powered by credit for more than 40 years, says Bill Gross - noting official credit outstanding today of $58T is 58x that of 1970. That expansion, though, looks to be ending, as private sector savers are growing leery, and regulators build fences against fast creation. And don't forget the meager returns, with negative interest rates in 40% of Euroland, and out ten years on the curve in Japan.
- The collapse in bank stocks globally isn't necessarily about energy losses. Price charts since 2007 for players like Citigroup (NYSE:C), Bank of America (NYSE:BAC), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), and Goldman Sachs (NYSE:GS) suggest the sector's either a screaming cheap buy, or "a permanently damaged victim of writes-offs, tighter regulation, and significantly lower futures margins. I'll vote for the latter."
- Then there's insurers, whose business models - which depend on 7-8% returns from risk assets - are at risk. They're not going bankrupt, but future profitability for companies like MetLife (NYSE:MET), Prudential (NYSE:PRU), and Hartford (NYSE:HIG) will be stifled as claims can't be covered as easily when investment returns are so lame.
- The same goes or pension funds, and Puerto Rico is going down Detroit's path not just because of overpromised benefits, but because they're not earning enough on their investment portfolios to cover those promises.
- Central bankers, meanwhile, think they can solve things by cutting rates just a bit further.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, SEF, FNCL, FXO, RYF, FINU, RWW, FINZ, XLFS
Wed, Mar. 2, 7:38 AM
- The bank has paid more than $9.3B in fines and settlements since the financial crisis, buy CEO John Cryan expects the largest of its legal issues to be done with by Q3.
- The trading action in Deutsche Bank (NYSE:DB) has been a bit panicky this year, and Cryan lays some of the blame on management. “We weren’t forceful enough to say we absolutely will make those dividend payments ... That set off some nervousness."
- As for the float of Postbank, Cryan says Deutsche isn't under pressure to sell and will wait for a more welcoming market environment.
- Cryan was speaking at a financial conference in Frankfurt.
- The stock's higher by 2.2% in Frankfurt trading.
Mon, Feb. 22, 2:40 PM
- The bank is cutting 75 jobs in fixed-income trading, split between London and NYC. "We are restructuring our FICC business to make it more suited to future market demands," says a Deutsche (DB +2.5%) spokesman.
- FICC resides in the lender's global markets division which employs about 4.8K worldwide.
- In related Deustche news, Global Head of Rates Sales Chris Yoshida is in talks to leave the bank, according to Reuters. Yoshida came to Deutsche less than two years ago from Morgan Stanley.
Mon, Feb. 15, 8:06 AM
- Deutsche Bank (NYSE:DB) will be able to make interest payments on its riskiest debt this year and in 2017, according to Moody's Investors Service.
- The bank can make payments due in April and only "a major, unforeseen event" would prevent those due a year later, analyst Peter Nerby said in a statement.
- The company has a Ba3 rating on the bank's so-called additional Tier 1 notes, which is three levels below investment grade.
- Previously: Deutsche Bank to buy back $5.4B in debt securities (Feb. 12 2016)
- Previously: Deutsche Bank to write down value of Postbank (Feb. 11 2016)
- Previously: Deutsche Bank at record low as fear over European banks grows (Feb. 08 2016)
- Previously: Deutsche CEO Cryan: It's no fun running this bank (Jan. 28 2016)
Fri, Feb. 12, 9:17 AM
Fri, Feb. 12, 8:55 AM
- Deutsche Bank (NYSE:DB) +9% premarket after announcing an offer to buy back ~$5.4B of bonds in euros and dollars, confirming media reports from earlier this week.
- DB says it is tendering for the purchase of up to 3B of euro-denominated bonds from five separate series, and up to $2B of dollar-denominated bonds from eight series.
- DB says its strong liquidity position allows it to repurchase the securities without any corresponding change to its 2016 funding plan.
Fri, Feb. 12, 2:11 AM
- Doubts are still swirling over many of Europe's large banks, which have major trading operations and took longer than their U.S. peers to bolster their balance sheets after the financial crisis.
- On Thursday, Standard and Poors cut Deutsche Bank's (NYSE:DB) Tier 1 securities to B+ from BB- and lowered its perpetual Tier 2 instruments to BB- from BB.
- Shares of Germany’s largest lender have also fallen about 40% since the start of this year as shareholders expressed concerns over upcoming earnings, its turnaround plan, and possibility bonds won't be repaid in full.
Thu, Feb. 11, 3:24 AM
- Deutsche Bank (NYSE:DB) plans to write down the value of Postbank by about a third, ahead of a planned sale of the retail unit as part of a strategic overhaul, Reuters reports.
- The institution's book value will be cut to €2.8B ($3.15B) because its current worth of €4.5B is seen as unachievable in either an IPO or a sale.
- Deutsche Bank shares are down around 35% since the start of the year, leading a slump across the European financial sector.
Wed, Feb. 10, 9:15 AM
Deutsche Bank AG provides corporate banking and investment services. It operates through the following segments: Corporate Banking and Securities (CB&S), Global Transaction Banking (GTB), Asset and Wealth Management (AWM), Private and Business Clients (PBC), and Non-Core Operations Unit (NCOU).... More
Industry: Foreign Money Center Banks
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