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
Dec. 22, 2015, 3:50 AM
- Sources say Deutsche Bank (NYSE:DB) has identified another $4B in suspicious transactions related to its Russian operations, in addition to the $6B in mirror trades it already flagged.
- DB shared its findings with international authorities in September, sources say. The U.S. DOJ was previously reported to be looking into whether Deutsche Bank’s handling of the mirror trades violated U.S. anti-money laundering rules. It has been advised of the new suspicious trades as well.
- In October, DB said it increased its litigation reserves by €1.2B, mainly to cover possible lawsuits over its Russia operations.
- Source: Bloomberg
Dec. 16, 2015, 8:26 AM
- Even with oil crashing and economic growth in The Kingdom slowing, Deutsche Bank (NYSE:DB) expects record performance at its Saudi operation this year, according to the unit's CEO Jamal Al Kishi.
- Among the deals this year was a 2B riyal ($530M) bond for Riyadh's Arab National Bank and a $10B loan for Saudi Aramco (Deutsche was among those banks participating).
- Deutshce employs about 80 in Saudi Arabia and this year will be the 4th-largest earner of investment banking fees in the Middle East, up from 5th a year ago.
- The Saudi head is talking a good game, maybe hoping his unit escapes the cost-cutting knife being wielded by new bank CEO John Cryan.
Nov. 25, 2015, 10:21 AM
- General Electric (GE -0.7%) has completed the sale of its Australia and New Zealand consumer finance business, representing aggregate ending net investment of approximately $4.3B, to a consortium made up of Varde Partners, KKR (KKR -0.2%) and Deutsche Bank (DB +0.6%).
- "Combined with the recently announced agreement to sell our commercial lending business in A&NZ, this is a big step in the complete exit of GE Capital from the region," said Keith Sherin, GE Capital chairman and CEO.
- Previously: Investor group to buy GE Capital consumer finance arm for $6.3B (Mar. 15 2015)
Nov. 23, 2015, 4:32 PM
- "I think people in banking are paid too much," says newish Deutsche Bank (NYSE:DB) co-CEO John Cryan. "Many people in the sector still believe they should be paid entrepreneurial wages for turning up to work with a regular salary, a pension and probably a health-care scheme and playing with other people’s money."
- Call it a "warning shot," says Jason Kennedy, the head of recruitment firm Kennedy Group. With the river of fines likely not ending anytime soon, Cryan's first priority is to build capital, not pay employees, says Kennedy. "Christmas has been cancelled."
- Deutsche has previously said it would delay bonus announcements until March, presumably to 1) give the bank time to get in a lot of layoffs, and 2) to let those spared know bonuses are going to be lame or nonexistent.
Nov. 12, 2015, 8:14 AM
- New co-CEO John Cryan is splitting Deutsche's (NYSE:DB) investment bank into two units - one focused on trading, and the other on corporate finance and transaction banking.
- Former JPMorgan executive Jeff Urwin - who joined the bank last year - is running the new corporate and investment banking division.
- 27-year Deutsche veteran Miles Millard - who a year ago was appointed as co-head of corporate finance in Europe - has left the bank.
- All primary debt and treasury businesses are being brought together under Mark Fedorcik, head of debt capital markets.
- James McMurdo has been promoted from CEO of the Australia and New Zealand operation to become head of CIB in Asia Pacific.
- Former Goldmanite Alasdair Warren will join DB as head of CIB for EMEA in the spring.
- Veteran U.S. P-E adviser John Eydenberg is becoming vice-chairman of CIB in the Americas.
- One big hole left to fill: A new head of global M&A following the exit of Henrik Aslaksen.
- Source: FT
Nov. 9, 2015, 4:24 AM
- The Financial Stability Board has published new rules that aim to stop banks from becoming "too big to fail," confirming its final proposals for Total Loss Absorbing Capacity, or TLAC.
- Under the plan, large lenders will have by January 2019 to hold a financial cushion of at least 16% of their risk-weighted assets in equity and debt that can be written off. That requirement will gradually increase, reaching 18% of assets weighted by risk by January 2022.
- The FSB will put the rules, which will apply to the world's top 30 banks, to the G20 later this month.
Nov. 2, 2015, 10:34 AM
- Part of Deutsche Bank's (DB +2.9%) major restructuring announced by CEO John Cryan last month is the new role of head of corporate and investment banking for Europe, the Middle East and Africa. According to Reuters, Alasdair Warren, co-head of Goldman's P-E advisory business, has been tapped for the new Deutsche position.
- Warren joined Goldman in 2005 and was named a partner three years later.
- Sources say he'll start at DB next year after six months gardening leave.
Oct. 29, 2015, 9:13 AM| Oct. 29, 2015, 9:13 AM
Oct. 29, 2015, 4:14 AM
- Big woes have just hit Deutsche Bank (NYSE:DB). The lender posted a €6B ($6.6B) net loss for the third quarter, scrapped its dividend for the next two years and announced plans to exit 10 countries and reduce its workforce by 35,000 employees.
- The move follows a recent writedown at its investment bank and the removal of three of the bank's eight board members.
- A sanctions settlement may also be in the making. As early as next week, Deutsche is expected to pay at least $200M to resolve investigations into its dealings with countries like Iran and Syria .
Oct. 19, 2015, 2:29 PM
- Calling into question the bank's "four eyes principle" meant to prevent such foul-ups, a junior member of Deutsche Bank's (NYSE:DB) forex sales team last summer accidentally processed the payment of $6B to a hedge fund.
- Source: FT
- Deutsche recovered the money the next day, though the Fed, ECB, and the U.K.'s FCA were notified. Insiders say such mistakes are surprisingly common, but ones of this size are unusual.
- Meanwhile, the bank is one of Europe's big gainers today after announcing a sweeping overhaul which includes the separation of the investment bank into two units.
- “Our cost base is swollen by poor and ineffective processes, antiquated and inadequate technology, too many tasks being completed using manual labor and, too frequently, unsuccessful investments in our infrastructure," said new CEO John Cryan last July.
Oct. 19, 2015, 2:36 AM
- Deutsche Bank (NYSE:DB) is splitting its investment bank into two units as part of a sweeping overhaul that will send several key executives packing.
- The move will see the separation of Deutsche's Corporate Banking and Securities division into one group focused on corporate finance and investment banking and the other on sales and trading.
- Who's being shown the door? Colin Fan, the bank's co-head of investment banking, and Michele Faissola, head of the bank's asset management business.
- Deutsche is also abolishing its group executive committee, which is made up of 19 senior managers, and streamlining how its main units are represented on the management board.
Oct. 8, 2015, 3:38 PM
- The move is inline with a year-old bank plan to exit trading in credit-default swap positions tied to individual issuers, and cut leverage by $225B.. Among the possible buyers of this particular portfolio is JPMorgan.
- Deutsche (DB -1.4%) earlier sold a similarly-sized bundle of CDS to Citigroup.
- Previously: Deutsche Bank reverses, turns higher premarket (Oct. 8)
Oct. 8, 2015, 7:38 AM
- Down as much as 8% last night following news of €5.8B in impairment charges to be taken in Q3, Deutsche Bank (NYSE:DB) is now up 0.8% in premarket action.
- Last night's news has all the signs of a new CEO clearing the decks for the way forward, but - as IP Banking Research points out on Seeking Alpha - much of the writedown won't have a significant impact on the bank's capital ratios (goodwill and intangibles usually don't figure in these).
- If Postbank is sold for below book value, this would be hit to capital, but should Deutsche sell its stake in Hua Xia Bank, it would likely be a benefit.
- Cutting the dividend, says IP, is the right thing to do given the big moves John Cryan is making at the lender. Most importantly, this probably means another dilutive capital raise won't happen.
- IP: "I am immensely impressed by the swiftness, decisiveness and quality of execution by the new CEO. Clearly, this is not about tinkering around the edges, this is a complete reset for the organization."
- Previously: New Deutsche CEO kitchen-sinking Q3; bank to cut or eliminate dividend (Oct. 7)
Oct. 7, 2015, 5:39 PM
Oct. 7, 2015, 4:19 PM
- Deutsche Bank (NYSE:DB) is lower by 5.8% in active after hours action after warning of €5.8B of impairment charges to goodwill and other intangibles, and telling investors to expect a reduction or elimination of the dividend for fiscal 2015.
- Among the charges: An €600M impairment to the carrying value of Deutsche's 20% stake in Hua Xia Bank, and a €1.2B litigation charge.
- The bank expects to report a loss of about €6.2B. Excluding items, the bank will see a net loss of roughly €400M.
- Co-CEO John Cryan took the reins on July 1.
Oct. 6, 2015, 12:13 PM
- The two U.S. banks lost plenty of trading action from hedge fund clients to European competitors during the financial crisis, but are winning it back in part thanks to new capital rules forcing the European lenders to whittle down their operations.
- According to Preqin, Goldman (NYSE:GS) and Morgan Stanley (NYSE:MS) have added about six hundred basis points of market share since the end of last year to 37%.
- Prime brokerage is one of the few areas on Wall Street where revenue and pricing are on the rise, say analysts, and could provide a buffer to Q3 earnings expected to take a hit from weaker FICC action.
- Among the European banks losing market share are Deutsche Bank (NYSE:DB), and Credit Suisse, whose new CEO plans further cutbacks in prime brokerage.
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
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