Thu, Oct. 8, 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)
Wed, Oct. 7, 5:39 PM
Wed, Oct. 7, 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.
Mon, Sep. 14, 8:45 AM
- Deutsche Bank (NYSE:DB) -1.7% premarket following a Reuters report that the bank is preparing to close all its Russian operations, except for transaction banking services.
- Over the weekend, Deutsche Bank said Russian unit chairman Joerg Bongartz would leave Moscow for Germany, a move that comes as the U.S. Department of Justice investigates potential money laundering involving the bank's Moscow office.
Fri, Jul. 10, 9:12 AM
Mon, Jul. 6, 9:10 AM
Mon, Jun. 29, 9:16 AM
Mon, Jun. 8, 9:16 AM
Mon, Jun. 8, 7:16 AM
- "With John Cryan as CEO, we think that Deutsche (NYSE:DB) is transitioning from one of the least credible management teams in investors’ minds to one of the most highly regarded," says John Cryan from Jefferies. "“We do not foresee a dramatic change in strategy or capital raising, but market confidence on delivery should clearly increase.”
- The stock's currently higher by 6% in premarket action.
- Cryan earned positive reviews after taking the CFO's job at UBS in 2008, and helping to lead that bank back from the crisis. He left UBS in 2011 to join Singapore's Temasek Holdings, and came to Deutsche in 2013.
- Previously: Deutsche Bank's co-CEOs resign (June 7)
Tue, May 26, 8:37 PM
- With attention already starting to shift to regulatory approval, Charter Communications (CHTR +2.5%) CEO Tom Rutledge says his company's $55B acquisition of Time Warner Cable (TWC +7.3%) will do better with the FCC than Comcast's: Think small.
- "If you look at the ecosystem, who we're playing with in terms of other competitors, they're very large, and we'll still be a relatively small company compared to the large phone companies, compared to Comcast, compared to the wireless companies," he told CNBC.
- Charter's simultaneous deal for Bright House Networks may pump up its own leverage, but it was critical to the TWC bid, says analyst Craig Moffett: Virtually debt-free Bright House and its borrowing capacity likely added as much as $18/share to Charter's $195.71/share offer. Moffett says TWC's handling of Altice's (OTC:ATCEY) counter-play was masterful.
- About that debt: TWC bondholders are still nervous about the combined load (While the firm's 30-year bonds rose 11.7% today, they're still down about 16% from last month). Moody's is likely to push TWC into junk rating territory as debt-to-EBITDA rises from TWC's 2.97 to about 4.79 for the combination. But again, Bright House's addition and "conservative voice on the board" may be mitigating the effects.
- And MoneyBeat's deal tally: Aside from big winner TWC, winners include Goldman Sachs (NYSE:GS), (eventually) rewarded for backing Charter, and UBS, working as sole adviser to Bright House; Losers include Comcast backer JPMorgan Chase (NYSE:JPM), and Deutsche Bank (DB -3.4%) -- a Charter backer back when, but unseen in the new deal.
- Previously: Charter to merge with Time Warner Cable, buy Bright House (May. 26 2015)
Mon, Apr. 27, 7:28 AM
- "The first plan didn’t turn out how you had hoped," says an analyst. “The management team is pretty much unchanged. Why should we believe this team will deliver this time around when it didn’t first time around?” Dropped today is the bank's hope for 12% ROE in 2016. Now, 10% is the goal in the medium term (it was 3.9% in Q1).
- Co-CEO Anshu Jain, speaking on a conference call, naturally disagrees with the assessment, tough notably missing from today's plan were details of how it will get to cost savings of €3.5B. “How are you going to make sure that these targets that you set today will actually be achieved," asks another analyst. "Five years is a long time to achieve those.”
- Source: Bloomberg
- DB is down 4.1% in premarket action.
- Previously: Deutsche Bank announces strategic overhaul (April 27)
Wed, Mar. 11, 4:36 PM
- Bank of America (NYSE:BAC) has deficiencies including loss and revenue modeling practices in its internal controls, says the Fed, requiring the bank to resubmit its capital plan before winning approval for boosted shareholder returns. The lender has until the end of September to address the Fed's concerns.
- Santander (NYSE:SAN) has "widespread and critical deficiencies," and Deutsche Bank (NYSE:DB) has "numerous and significant deficiencies." We're talking about the U.S. units here, and the capital returns in question are back to the parents, not to shareholders.
- CCAR results
- BAC -1.25%, DB -1.2%, SAN -1% after hours
Oct. 27, 2014, 12:52 PM
- “Judging from the market reaction today, investors don’t completely believe in the ECB," says Peter Garnry, head of equity strategy at Saxo Bank. "They are more pessimistic on the banks."
- Financial firms were among the worst performers today following the release of ECB stress tests over the weekend, falling 0.9% vs. the Stoxx Europe 600's decline of 0.6%. Hardest hit were the Italian lenders after that country's banks made up a disproportionate share of those who failed the exams. Not failing, but nevertheless hit: Unicredit (OTCPK:UNCFF, OTC:UNCFY) -2.6%, Intesa Sanpaolo (OTCPK:IITOF, OTCPK:IITSF, OTCPK:ISNPY) -3.1%. Italy's FTSE MIB index (NYSEARCA:EWI) led European declines, falling 2.3%.
- Also taking a hit despite no issues from the stress tests were Europe's larger banking powers: Santander (SAN -3%), Deutsche Bank (DB -1.6%), ING (ING -1.8%), BBVA (BBVA -2.3%).
- EUFN -1.4%
- Previously: ECB stress test failures centered among Italian banks
Jul. 22, 2014, 3:51 PM
- Deutsche Bank (DB -3.1%) drops sharply after WSJ reports an examination by the New York Fed found the bank's U.S. operations suffer from several serious problems, including shoddy financial reporting, inadequate auditing and oversight and weak technology systems.
- In a letter to DB last December, a senior NY Fed official reportedly wrote that financial reports produced by some of the bank's U.S. operations "are of low quality, inaccurate and unreliable" to the extent that DB's "entire U.S. regulatory reporting structure requires wide-ranging remedial action."
- The letter was said to have ordered senior DB execs to ensure steps were taken to fix the problems, and that the bank might have to restate some of the financial data it has submitted to regulators.
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Jul. 9, 2014, 8:12 AM
- Responding to news on a couple of European lenders, JPMorgan upgrades Deutsche Bank (DB) to Overweight citing the recent capital raise, and downgrades BNP Paribas (BNPZY) to Neutral, citing lower capital returns following the $8.9B U.S. criminal settlement.
- Deutsche is up 1% premarket; BNP is lower by 1.3% in Paris action.
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