- Will the US enter a recession? Deutsche Bank says it’s inevitable. USA TODAY
- Deutsche Bank’s top minds put U.S. recession chance near 100%—and say avoiding a hard landing would be ‘historically unprecedented’ Fortune
- Bond Traders Step Up Bets the Fed Will Steer US Economy Into Recession Yahoo Finance
- Goldman’s Hatzius Feeling ‘Very Good’ About Soft-Landing Call Financial Post
- There won’t be a true recession anytime soon—but a ‘growth recession’ is still on the menu next year, BofA warns Fortune
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Tag Archives: Deutsche
Deutsche Bank earnings Q3 2022
Deutsche Bank on Wednesday crushed market expectations for the third quarter, amid higher interest rates and turbulent market trading.
The bank reported a net income of 1.115 billion euros ($1.11 billion) for the quarter. Analysts had predicted a net profit of 827 million euros, according to data from Refinitiv.
“We are seeing the benefit of interest rates come through in our corporate bank and private bank, essentially those with large deposit books and we are seeing our FIC [fixed income and currencies] business managing this environment extremely well,” James von Moltke, CFO of Deutsche Bank, told CNBC’s Joumanna Bercetche.
CEO Christian Sewing said in a statement that the bank is “well on track” to meet its 2022 goals. In the medium term, the bank said it aims to achieve returns on average tangible equity to above 10% by 2025.
Here are other highlights for the quarter:
- Revenues rose 15% from a year ago, and hit 6.92 billion euros.
- Common Equity Tier 1 ratio, a measure of bank solvency, stood at 13.3% from 13% a year ago.
Deutsch Bank reported earnings for the third quarter.
Bloomberg | Bloomberg | Getty Images
Looking at the bank’s individual divisions, investment banking revenues increased 6% from a year ago. In particular, revenues in Fixed Income and Currencies were up by 38% over the same period and helped offset lower performance in Credit Trading.
Within this context, the bank said revenues in Origination and Advisory dropped 85% year on year, pointing to lower deal making — as has been the case with some of its U.S. peers.
Corporate Banking, however, saw the biggest jump in revenues among all divisions, up by 25% from a year ago.
Deutsche Bank also said it had further reduced its exposure to Russian credit over the same period. The bank has been cutting its ties with Russia in the wake of Moscow’s unprovoked invasion of Ukraine. As a result, additional contingent risk fell to 0.2 billion euros, from the 0.6 billion euros at the end of the second quarter.
Higher interest rates for longer?
The German bank reported higher provisions in comparison to the same quarter a year ago. These came in at 350 million euros at the end of the third quarter, compared to 117 million euros at this time last year.
The bank said these reflected a “more challenging macroeconomic forecasts.” Speaking to CNBC, von Moltke reiterated his expectation of a recession in 2023 in Germany and the broader European market.
Despite the poor growth expectations, Deutsche Bank believes the European Central Bank will continue to hike rates. At the moment, the main ECB rate stands at 0.75%.
“We do think terminal rates have now begun to converge towards our view and that would probably be more like 3% for the ECB and 5% maybe 5.5% … for the Fed. I think that’s important because the critical thing is to get inflation under control and therefore we are entirely supportive of the central bank actions,” von Moltke said.
Shares of Deutsche Bank are down about 17% so far this year. The German lender beat expectations back in the second quarter with a profit of 1.046 billion euros.
Cantor executive, former Deutsche Bank Co-CEO Anshu Jain dies
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Anshu Jain, Cantor Fitzgerald president and former co-CEO of Deutsche Bank, has died. He was 59.
The news was reported by his family said in a statement Saturday.
Jain died after a battle with duodenal cancer, which he was diagnosed with in 2017.
Jain was Co-CEO of Deutsche Bank from 2012 to 2015.
FILE – Co-CEO of Deutsche Bank Anshu Jain speaks during the annual shareholders meeting in Frankfurt, Germany, on May 22, 2014. Jain, a fomer co-CEO of Deutsche Bank, has died, according to a statement by his family on Saturday, Aug. 13, 2022. He was ( (AP Photo/Michael Probst, File) / AP Newsroom)
It was at Deutsche Bank where he helped build the firm’s global capital markets business.
US ECONOMY ON BRINK OF ‘MAJOR RECESSION,’ DEUTSCHE BANK WARNS
Jain was Co-CEO along with Jürgen Fitschen and was the first ever non-European to lead the German bank.
A logo is pictured on the Deutsche Bank building in Geneva, Switzerland. (REUTERS/Denis Balibouse/File Photo / Reuters Photos)
“Anshu Jain played a key role in expanding Deutsche Bank’s position in our global business with companies and institutional investors,” said Alexander Wynaendts, Chairman of the Supervisory Board of Deutsche Bank. “Today, this is of strategic importance not just for Deutsche Bank, but for Europe as a financial center.”
DEUTSCHE BANK WINDING DOWN RUSSIA BUSINESS
Jain served as president of New York-based financial services company Cantor Fitzgerald from 2017 until his death.
NEW YORK, NEW YORK – Annual Charity Day Hosted By Cantor Fitzgerald: Anshu Jain, Edie Lutnick, Howard Lutnick and Jim Buccola on September 11, 2019 in New York City. ((Photo by Dia Dipasupil/Getty Images for Cantor Fitzgerald) / Getty Images)
Cantor Fitzgerald CEO Howard Lutnick said Jain “was the consummate professional who brought a wealth of experience and wisdom to his role as president.”
He began his career at Kidder, Peabody & Co., then moved to Merrill Lynch, where he set up and then ran the firm’s global hedge fund coverage group.
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He is survived by his wife, Geetika, his mother, and two children.
The Associated Press contributed to this report.
Former Deutsche Bank Co-CEO Anshu Jain dies
NEW YORK (AP) — Anshu Jain, a former co-CEO of Deutsche Bank, has died, his family said in a statement Saturday. He was 59.
Jain died after a battle with duodenal cancer, which he was diagnosed with in 2017.
Jain was Co-CEO of Deutsche Bank from 2012 to 2015, where he helped build the firm’s global capital markets business. As Co-CEO along with Jürgen Fitschen, he was the first ever non-European to lead the German bank. Before that, he was appointed to Deutsche Bank’s Management Board in 2009 and ran the corporate and investment bank division from 2010.
“Anshu Jain played a key role in expanding Deutsche Bank’s position in our global business with companies and institutional investors,” said Alexander Wynaendts, Chairman of the Supervisory Board of Deutsche Bank. “Today, this is of strategic importance not just for Deutsche Bank, but for Europe as a financial center.”
After leaving Deutsche Bank, Jain served as president of New York-based financial services company Cantor Fitzgerald from 2017 until his death.
Cantor Fitzgerald CEO Howard Lutnick said Jain “was the consummate professional who brought a wealth of experience and wisdom to his role as president.”
He began his career as an analyst in derivatives research at Kidder, Peabody & Co., then moved to Merrill Lynch, where he spent seven years setting up and then running the firm’s global hedge fund coverage group.
Jain was born in Jaipur, India, in January 1963. He received an MBA at the University of Massachusetts, Amherst. He was a lifelong vegetarian and loved wildlife photography, cricket and golf, according to his family’s statement.
He is survived by his wife, Geetika, his mother, and two children.
Former Deutsche Bank co-CEO Anshu Jain dies
Anshu Jain, co-CEO of Deutsche Bank, addresses the bank’s annual general meeting in Frankfurt, Germany, May 21, 2015. REUTERS/Kai Pfaffenbach
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Aug 13 (Reuters) – Anshu Jain, a top finance executive best known for helping German lender Deutsche Bank AG (DBKGn.DE) take on the largest Wall Street firms, died overnight on Saturday after a five-year battle with cancer, his family said. He was 59.
Jain, who was born in India, spent two decades building Deutsche Bank into one of the world’s top universal banks. He was the first non-European to lead the German institution.
In the aftermath of the financial crisis of 2008 and the European debt crisis that followed, Jain pushed Deutsche to remain Europe’s “last man standing” as U.S. firms pulled ahead in global banking.
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The years of expansion into risky investment banking businesses came back to haunt the bank, as regulation made complex trades more costly. As co-chief executive he struggled to cut back the risk and to get a grip on a long list of scandals that led to billions of dollars in fines.
He resigned from the German lender in 2015, and had been the president of U.S. financial services firm Cantor Fitzgerald since 2017.
“He will be remembered for his leadership in financial services and his deep commitment to conservation,” said Larry Fink, chief executive of BlackRock Inc, who said he knew Jain well.
Born in the Indian city of Jaipur, Jain earned his bachelors at the University of Delhi before completing an MBA at the University of Massachusetts in Amherst.
A lifelong vegetarian, he loved wildlife photography, safaris in Kenya’s Masaai Mara and wilderness conservation, his family said.
He joined Deutsche in 1995 to launch a division specializing in hedge funds and derivatives. He then headed bond trading and emerging markets and later, as head of the investment bank, he out-earned his boss, then-CEO Josef Ackermann.
He was appointed to Deutsche’s management board in 2009 and was responsible for the corporate and investment bank division from 2010. From 2012 to 2015, he was co-CEO.
“Anyone who worked with Anshu experienced a passionate leader of intellectual brilliance,” said present CEO, Christian Sewing.
Jain was diagnosed in January 2017 with duodenal cancer, which affects the small intestine, but managed to outlive his initial diagnosis by four years, the family said.
“To his last day, Anshu stood by his lifelong determination to ‘not be a statistic’,” the family said.
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Reporting by Vera Eckert in Frankfurt and Maria Ponnezhath in Bengaluru, Editing by Franklin Paul and Clelia Oziel
Our Standards: The Thomson Reuters Trust Principles.
Former Deutsche Bank co-CEO Anshu Jain dies at 59
Jain Anshu, President of Cantor Fitzgerald appears on CNBC’s Squawk on the Street at the 2020 World Economic Forum in Davos, Switzerland on Jan. 22nd. 2020.
Gerry Miller | CNBC
Anshu Jain, an Indian-born investment banker who rose to the role of co-CEO at Deutsche Bank, died last night after a long battle with cancer, his family announced in a statement Saturday. He was 59 years old.
Jain, who most recently served as the president of Cantor Fitzgerald, earned an MBA at the University of Massachusetts-Amherst and worked at several financial firms, including Merrill Lynch, before moving to Deutsche Bank. He served as co-CEO from 2012 to 2015.
Jain stepped down from his role at Deutsche before his contract ended after the bank was beset by a string of regulatory issues.
His other positions included a role as an advisor at fintech company SoFi from 2016 to 2017 and as a trustee of British charity Chance to Shine.
“He believed in hard work, meritocracy, operating outside of expectations or conventional boundaries, placing family first, standing by one’s roots (having turned away many attempts to Westernize him in an industry that was often homogenous), in speaking ‘at the margin’ rather than delivering plain facts, in wit and wordplay, in being nonmaterialistic, and in the importance of having broad-bandwidth and being a ‘scholar-athlete,'” his family said in a statement.
“We are grateful to the many people who cared for Anshu throughout his life. For us, his legacy is tenacity, honour, and love,” the statement said.
Correction: This article has been updated to delete a reference to Ajit Jain, who is not related to Anshu Jain.
Former Deutsche Bank CEO Anshu Jain dies, aged 59
Anshu Jain, the Indian-born banker who helped transform Deutsche Bank from a largely domestic lender into a global financial titan, has died aged 59.
The City of London and Wall Street-trained Jain, who led Deutsche as co-chief executive from 2012 to 2015, had been suffering from stomach cancer, and passed away in the UK on Friday evening, his family confirmed.
“We are deeply saddened that our beloved husband, son, and father . . . passed away overnight after a fierce, five-year battle with duodenal cancer,” Jain’s family said in a statement, adding that he had managed to outlive his doctors’ original prognosis by four years. “To his last day, Anshu stood by his life-long determination to ‘not be a statistic’,” they said.
Jain, a pioneer of derivatives trading, joined Germany’s largest lender in 1995 from Merrill Lynch, where he had set up and run a unit covering hedge funds around the world. He rose quickly through the ranks.
After his mentor Edson Mitchell — the American who ran Deutsche’s investment banking arm — died in a plane crash in 2000, Jain became head of Deutsche’s global markets business, before co-leading the investment banking division in 2004.
He jointly oversaw a period of rapid growth in which the unit generated the vast bulk of Deutsche’s profits, briefly helping it become the world’s largest bank. Jain took sole control of the division in 2010, when he out-earned the then-CEO Josef Ackermann.
In what was then a rare achievement for an outsider with less-than-polished German, the Jaipur-born and Delhi-raised Jain was elevated to the top job at Deutsche Bank in 2012, and made co-chief executive alongside German Jürgen Fitschen. He commanded one of the largest salaries in global banking and drew praise from key investors including Larry Fink, the boss of the bank’s single largest shareholder, BlackRock.
However shareholder unrest over lacklustre profits, spiralling costs, labour altercations and repeated clashes with Deutsche’s Frankfurt establishment led to Jain’s departure in the summer of 2015, two years before his contract was up.
The bank was also under pressure from regulators, who raised concerns about its internal culture. Deutsche had been forced to pay billions of euros to settle accusations over Libor manipulation and faced investigations over money laundering and foreign exchange abuses.
After briefly stepping back, Jain returned to financial services in 2017 as president of American investment bank Cantor Fitzgerald, while also acting as an adviser to online bank SoFi.
Deutsche Bank beats expectations to post eighth straight quarter of profit
Deutsche Bank beat market expectations to post an eighth straight quarter of profit on Wednesday, recording a second-quarter net income of 1.046 billion euros ($1.06 billion).
The German lender exceeded consensus expectations among analysts aggregated by Refinitiv of a 960.2 million euro profit, and vastly improved on the 692 million euro profit for the same period last year.
Here are some other highlights for the quarter:
- Total revenues stood at 6.6 billion euros, up 7% from 6.2 billion for the same period last year.
- Total expenses were 4.87 billion euros, down 3% from 4.998 billion for the second quarter of 2021.
- Return on tangible equity was 7.9%, up from 5.5% a year ago.
- CET1 capital ratio, a measure of bank solvency, was 13%, up from 12.8% in the first quarter.
“With the best half-year profits since 2011, we have proven – once again – that we can deliver growth and rising profits in a challenging environment,” Deutsche Bank CEO Christian Sewing said in a statement.
“We are particularly pleased with the progress of our Corporate Bank and Private Bank. Thanks to our successful transformation, we’re well on track to deliver sustainable and well-balanced returns through our four strong core businesses.”
Chief Financial Officer James von Moltke also told CNBC on Wednesday that the drivers of profit growth had been strong across the bank’s core businesses.
“That momentum that we talked about last quarter carried through to the second quarter, for sure. Our corporate bank was up 26% year-on-year, driven by not just the interest rate changes but also volume growth, fee income growth,” he said.
“The investment bank performed very well at 11% (growth) and 32% in our FIC (fixed income and currencies) business, so we have been able to navigate these markets, take advantage of the trends.”
Sewing last month dubbed inflation the “biggest poison” for the global economy, and told CNBC that the risk of recession was rising in Germany and further afield.
Prosecutors search Deutsche Bank HQ in money laundering investigation
The headquarters of Germany’s Deutsche Bank are pictured in Frankfurt, Germany, September 21, 2020. REUTERS/Ralph Orlowski/File Photo
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FRANKFURT, April 29 (Reuters) – Prosecutors, federal police and other officials searched Deutsche Bank’s (DBKGn.DE) headquarters in Frankfurt on Friday in a move Germany’s largest lender said was linked to suspicions of money laundering it had reported to the authorities.
Under Chief Executive Christian Sewing, Deutsche Bank has been trying to repair its reputation after a series of embarrassing and costly regulatory failings, including another raid over money laundering in 2018.
In a statement, Deutsche Bank said the search was related to suspicious transactions it had itself passed on to authorities and that it was cooperating fully.
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At issue is whether Deutsche Bank filed the so-called suspicious activity report in a timely manner or not, a person with knowledge of the matter said. Deutsche was acting as a correspondent bank in the transaction, the person said.
Prosecutors said they had a search warrant but declined to elaborate. They said representatives of financial regulator BaFin were also taking part.
BaFin and federal police declined to comment.
The bank’s shares fell more than 3% following news of the search and were down 0.4% in Frankfurt by 1500 GMT.
Problems with money laundering have landed the bank in hot water in the past.
In 2020, Deutsche Bank was fined 13.5 million euros for late reporting of suspicious activities linked to potential money laundering.
The U.S. Department of Justice has also been investigating it for years over trades that authorities said were used to launder $10 billion out of Russia, which has led to the German bank being fined nearly $700 million.
In 2018, BaFin took the unusual step of installing KPMG as a special monitor at Deutsche to oversee progress on money laundering controls.
Last year, BaFin ordered Deutsche to enact further safeguards to prevent money laundering and the regulator widened the auditor’s mandate.
Deutsche has said it has beefed up resources to combat money laundering.
This week, the bank posted a better-than-expected 17% rise in first-quarter profit as investment banking revenue climbed, but it warned that the conflict in Ukraine could hurt annual earnings.
A Reuters witness said that there was no sign of authorities outside the bank’s headquarters on Friday.
That contrasts with the 2018 raid when about 170 police and other officials arrived in blue and grey marked vehicles.
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Reporting by Tom Sims, Frank Siebelt and Reuters TV; Editing by Thomas Escritt, Sabine Wollrab and David Clarke
Our Standards: The Thomson Reuters Trust Principles.
Deutsche Bank earnings q1 2022
Deutsche Bank reported Wednesday its seventh consecutive quarterly profit, but warned that the current environment is “challenging” and “cost pressures have intensified.”
The German lender said net profit reached 1.06 billion euros ($1.13 billion) in the first quarter of the year. Analysts had forecast a figure of 1.01 billion euros for the three-month period, according to data from Refinitiv.
“Deutsche Bank is more stable and resilient than it has been for many years. Our figures for the first quarter demonstrate this clearly,” CEO Christian Sewing said in a letter to staff Wednesday. But the German bank noted in its earnings report that the outlook for this year was challenging.
“Despite the uncertainties associated with the war in Ukraine and the remaining challenges associated with the COVID-19 pandemic, we intend to continue executing our strategy in a disciplined manner focusing on improving sustainable profitability by growing revenues in our Core Bank while remaining disciplined on costs and capital; however, the current environment is increasingly challenging, and cost pressures have intensified,” the bank said.
Surging inflation and how central banks might react to that has rattled markets recently, and caused significant uncertainty for businesses including banks. A sudden change in monetary policy could impact banks’ performances.
‘A wall of worries’
James von Moltke, chief financial officer of Deutsche Bank, told CNBC’s Annette Weisbach: “It’s a wall of worries at the moment.”
“There’s a number of different features out there and of course the war in Ukraine dominates because it dominates the news, but it shouldn’t overshadow that there are still some pressures whether supply chains, the Chinese reaction to Covid and other features,” he said.
Other data highlights for the quarter:
- Revenues rose 1% from a year ago to 7.33 billion euros.
- Provision from credit losses stood at 292 million euros, compared to 69 million euros a year ago.
- CET 1 capital ratio, a measure of bank solvency, stood at 12.8% down from 13.7% a year ago.
All of Deutsche Bank’s divisions posted better performances compared to a year ago. In investment banking, fixed income and currencies reported that revenues were higher by 15%.
Commenting on the results, von Moltke added that “these trends are likely continue into the second quarter.”
“There’s still uncertainty in the financial markets and some volatility out there, our goal is to support our clients in this environment,” he said.
Russia exposure
On Mar. 11, Deutsche Bank said it would wind down its Russia operations — a major U-turn compared to its initial stance as war broke out in Ukraine. The German bank said it was joining a host of international peers in exiting the country in response to its invasion of Ukraine and resultant operational restrictions.
As such, Deutsche Bank said it cut its exposure to Russia during the first quarter. Gross loan exposure was reduced by 5% to 1.3 billion euros and net loan exposure decreased 21% to 0.5 billion euros during the quarter. It also said that it is “unreservedly implementing” western sanctions against Russia.
The German lender surprised markets at the end of 2021 with a profit of 145 million euros when investors had estimated a net loss for the last quarter of the year. Shares are down about 6.6% since the start of the year.