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Research Tree provides access to ongoing research coverage, media content and regulatory news on DEUTSCHE BANK AG-REGISTERED. We currently have 11 research reports from 1 professional analysts.
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DEUTSCHE BANK AG-REGISTERED
DEUTSCHE BANK AG-REGISTERED
Once again a new strategy and a capital increase; new German hope?
06 Mar 17
Deutsche Bank released on Sunday, 5 March, the following key items regarding a capital increase and strategy moves. • Deutsche Bank intends to increase its capital from the issuance of new shares by around €8bn. Deutsche Bank expects to issue up to 687.5 million new shares with subscription rights to existing shareholders and with the same dividend rights as all other outstanding shares. The subscription period of the rights is expected to run through to 6 April 2017. Upon completion of the proposed capital raise, the Bank’s fully-loaded 31 December 2016 pro forma CET1 ratio would be 14.1%, and its pro forma leverage ratio 4.1%. • Up to €2bn of additional capital accretion is targeted in the next two years from asset disposals and a flotation of the minority stake of Deutsche Asset Management. • A simplified business model is targeted consisting of three business units: Corporate & Investment Bank, Wealth Management and Asset Management. • The Postbank sale is cancelled. Postbank and Deutsche Bank’s Private & Commercial Clients business will be combined into a new Wealth Management segment. • Corporate Finance, Global Markets and Global Transaction Banking are going to become part of an integrated Corporate & Investment Bank again. • Restructuring and severance costs are anticipated of c.€2bn, the majority of which is expected to be incurred in 2017-19. • Intention to decrease the adjusted cost base from €24.1bn (2016, after business disposals) to about €22bn (2018) and then to about €21bn (2021). • The bank will aim to reach a return on tangible equity of 10% in a normalised operating environment. • Management intends now to propose at the AGM in May 2017 to pay aggregate dividends of €0.19 per share for FY2016, including the shares to be issued in the announced capital raise. The bank intends to propose at least a minimum dividend of €0.11 per share for FY2017 and targets a competitive payout ratio for fiscal FY2018 and thereafter. • Marcus Schenck, CFO, and Christian Sewing, CEO of Germany and Head of Private, Wealth & Commercial Clients, have been appointed Deputy CEOs with immediate effect. Marcus Schenck will join Garth Ritchie in leading the new Corporate & Investment Bank in the course of the year.
Loss for 2016 worse than expected, a profitable business model strongly needed
02 Feb 17
Deutsche Bank released preliminary figures for FY2016 but no income statement or balance sheet. Revenues were down by 10% to €30.0bn for FY2016 compared to FY2015. Risk provisions increased by 45% to €1.4bn in FY2016. Non-interest expenses declined by 24% to €29.4bn for FY2016 as litigation charges came down from €5.2bn for FY2015 to €2.4bn for FY2016. Impairments were down from €5.8bn to €1.3bn (mainly Abbey Life) in the same period. The pre-tax loss is around €800m for FY2016 compared to a loss of €6.1bn for FY2015. The net loss attributable to shares should be around €1.7bn for FY2016 compared to €7bn for FY2015. Deutsche released only net loss figures without interest expenses for AT1 bonds of around €276m. The pro forma fully-loaded Basel 3 Core Tier 1 ratio was 11.9% as at the end of December 2016 compared to 11.1% at the end of 2015. The leverage ratio (fully-loaded) was unchanged at 3.5% in the same period. Net money outflow was €39bn at PW&CC and €41bn at DAM in FY2016. The final figures for FY2016 will be released with the annual report due on 17 March 2017.
Massive cost savings with new regulations?
17 Nov 16
Will laws and new regulations force Deutsche Bank’s management to cut costs significantly? The bank has been deliberating for months regarding media speculation about whether it will sue former management (Vorstand) for compensation or use the claw-back rules regarding deferred bonus compensation. The bank might be forced to request back-paid bonus compensation to be returned from its (and former) employees in the case of group losses with regard to the new EU regulations concerning compensation. These regulations still have to be set by the German banking regulator BaFin (Institutsvergütungsverordnung) and are due to be enforced from January 2017 onwards.
Slight net profit for Q3 16 due to lower booked litigation costs
27 Oct 16
Net result attributable to shares increased from a loss of €6.0m for Q3 15 to a profit of €256m for Q3 16. Total revenues were up by 2% to €7.5bn in Q3 16 compared to Q3 15. Total expenses declined by 50% to €6.55bn in the same period and by 4% on an adjusted basis. Litigation charges were €501m for Q3 16 compared to €1.2bn for Q3 15. Restructuring costs were €45m for Q3 16 compared to €2m for Q3 15. Deutsche made a goodwill impairment of €5.8bn in Q3 15 compared a release of €49m in Q3 16. Pre-tax profit was €619m for Q3 16 compared to a pre-tax loss of €6.1bn for Q3 15. The tax ratio was 55% in Q3 16 as litigation charges and goodwill impairments are not tax deductable. The RoE was 1.7% for Q3 16 on an annualised basis. The pro forma fully-loaded Basel 3 Core Tier 1 ratio was 11.1% as at the end of September 2016 compared to 11.1% at the end of 2015. The leverage ratio (fully-loaded) was unchanged at 3.5% in the same period. Net money outflow was €17bn in Q3 16 compared to an outflow of €2bn in Q3 15.
Net loss attributable to shares of €258m for Q2 16
27 Jul 16
Net result attributable to shares decreased from a profit of €568m for Q2 15 to a loss of €258m for Q2 16. Total revenues were down by 20% to €7.4bn in Q2 16 compared to Q2 15. Total expenses declined by 14% to €6.7bn in the same period. Litigation charges were €120m for Q2 16 compared to €1.2bn for Q2 15. Restructuring costs rose from €45m for Q2 15 to €207m for Q2 16. Deutsche made a goodwill impairment of €285m in Q2 16. On the other hand, the bank benefited from the sale of its VISA stakes by €192m for Q2 16. Pre-tax profit declined by 67% to €408m for Q2 16 compared to Q2 15. The tax ratio was unusually high with 95% in Q2 16 compared to 33% for Q2 15 as litigation charges and goodwill impairments are not tax deductable. Interest expenses for AT1 notes (CoCos) were €276m in April 2016 and pushed the net result attributable to shares for Q2 and H1 16 to a loss. The pro forma fully-loaded Basel 3 Core Tier 1 ratio was 10.8% as at the end of June 2016 compared to 11.1% at the end of 2015. The leverage ratio (fully-loaded) decreased slightly from 3.5% to 3.4% in the same period. Net money outflow was €10bn in Q2 16 compared to an inflow of €12bn in Q2 15.
Disappointing Q1 earnings
28 Apr 16
Net income attributable to shareholders decreased by 61% to €213m for Q1 16 compared to Q1 15. Total revenues were down by 22% to €8.1bn in Q1 16 compared to Q1 15. Total expenses declined by 17% to €7.2bn in the same period. Litigation charges were €187m for Q1 16 compared to €1.54bn for Q1 15. Restructuring costs rose from €67m for Q1 15 to €285m for Q1 16. Pre-tax profit declined by 61% to €579m for Q1 16 compared to Q1 15. The tax ratio was again at a high level of 59% in Q1 16 compared to 62% for Q1 15. The RoE was 1.4% in Q1 16 compared to 3.1% in Q1 15. The pro forma fully-loaded Basel 3 Core Tier 1 ratio was 10.7% as at 31 March 2016 compared to 11.1% at the end of 2015. Deutsche said the pro forma impact of the sale of the Hua Xia Bank stake, anticipated in Q2 16, should add ~50bp to CET1. The leverage ratio (fully-loaded) decreased slightly from 3.5% to 3.4% in the same period. Net money outflow was €14bn in Q1 16 compared to an inflow of €15bn in Q1 15 at DAM.
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
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Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.