Latest news with #AdditionalTier1
Bloomberg
3 days ago
- Business
- Bloomberg
Untested Banks Find Demand for Risky AT1 Bonds
Investors are so eager to buy the riskiest bank debt that they're snatching up securities even from unproven borrowers. A UK bank rescued from collapse less than two years ago, a lender to small businesses and an online loan provider are among a swathe of firms selling their first Additional Tier 1 bonds this year.
RTÉ News
14-05-2025
- Business
- RTÉ News
Swiss court rules Credit Suisse bonus cuts were unlawful
A top Swiss court has ruled that the Swiss government's reductions and cancellations of bonus payments to former executives of Credit Suisse after the bank failed in 2023 were unlawful, according to the ruling published last night. The bonus measures affected around 1,000 people, some of whom challenged the decision with Switzerland's Federal Administrative Court, which upheld their appeal. "The variable remunerations reduced by the (Swiss finance ministry) were binding, employer-guaranteed claims deriving from a contractual employment relationship," the court said. "Such contractual claims are protected by the guarantee of ownership." The ruling may be appealed to the Federal Supreme Court, the court said in a statement. The finance ministry said it would analyse the ruling and consider lodging an appeal to the Supreme Court. Credit Suisse collapsed in March 2023 and was taken over by its longstanding rival UBS in an operation orchestrated by Swiss authorities. Acting upon the instructions of the federal cabinet, the finance ministry in May 2023 ordered Credit Suisse to reduce or scrap outstanding bonus payments for the bank's bosses. UBS, which would have to pay out any restituted bonuses, said it took note of the court's decision. The court's decision is likely to be closely watched by other parties affected by the demise of Credit Suisse. In the aftermath of the bank's collapse, Swiss financial market regulator FINMA wrote down about $17 billion of Credit Suisse's Additional Tier 1 (AT1) debt, angering bondholders. A number of bondholders have since filed lawsuits against Switzerland seeking compensation for their losses.
Arab News
01-05-2025
- Business
- Arab News
Closing Bell: Saudi main index closes in red at 11,543
RIYADH: Saudi Arabia's Tadawul All Share Index dipped on Thursday, losing 127.90 points, or 1.10 percent, to close at 11,543.67. The total trading turnover of the benchmark index was SR5.09 billion ($1.35 billion), as 52 stocks advanced, while 193 retreated. The MSCI Tadawul Index decreased by 16.97 points, or 1.14 percent, to close at 1,471.91. The Kingdom's parallel market Nomu also dipped, losing 147.4 points, or 0.52 percent, to close at 28,129.77. This came as 32 stocks rose, while 41 fell. The best-performing stock on the main index was Saudi Printing and Packaging Co., with its share price surging by 6.18 percent to SR13.06. Saudi Cement Co. saw the steepest decline on the main index in Thursday's session, with its share price slipping 5.75 percent to SR43.40. In a bourse filing, Banque Saudi Fransi announced that it has completed its $650 million offering of US dollar-denominated Additional Tier 1 capital notes. The issuance, conducted under the bank's Additional Tier 1 Capital Note Programme, was offered to eligible investors in Saudi Arabia and internationally, with settlement set for May 7. The notes were issued at a return of 6.375 percent per annum and are perpetual in nature, with a call option exercisable after six years. A total of 3,250 notes were issued, each with a par value of $200,000. According to the bank, the instruments may be redeemed prior to the scheduled call date under certain conditions outlined in the base offering circular. The notes will be listed on the International Securities Market of the London Stock Exchange and were offered in reliance on Regulation S under the US Securities Act of 1933, as amended. The bank's share price traded 0.54 percent lower on the main market to reach SR18.30. Halwani Bros. Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR11.51 million, a 4.58 percent decline compared to the previous quarter last year. The company attributed the decrease to higher general and administrative expenses, as well as increased selling and distribution costs. It also said that this was due to an increase in other income as a result of the reversal of provisions that are no longer needed. Halwani Bros. Co's share price traded 0.52 percent lower on the main market to reach SR47.95. In the first quarter of 2025, Fourth Milling Co's net profit rose 25.154 percent quarter on quarter to SR52.6 million, according to a filing on the stock exchange. The group attributed the increase to sales growing by 2 percent, amounting to an increase of SR3.4 million, and zakat and tax payments decreasing by SR1.4 million. The company's share price traded 0.25 percent lower on the main market to reach SR3.97. Saudi Steel Pipe Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR69 million, an 81.57 percent surge compared to the previous quarter. The company attributed the increase to higher volume, improved efficiency and product mix of products sold, and administrative expenses decreased to SR14 million in the first quarter 2025 from SR19 million in the fourth 2024. The company's share price traded 0.18 percent higher on the main market to reach SR56.10.
Yahoo
24-03-2025
- Business
- Yahoo
Deutsche Bank Plans Euro AT1 Sale With a 7.75% Coupon
(Bloomberg) -- Deutsche Bank AG is selling a euro-denominated Additional Tier 1 bond, with the initial pricing indicating it will pay a coupon of around 7.75%, according to a person familiar with the matter who asked not to be identified. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Libraries Warn They Could Be 'Cut off at the Knees' by DOGE The lender will have an option to call the notes after six years, the person said. The sale is coming on the heels of Deutsche Bank's decision Friday not to redeem $1.25 billion of AT1 debt, opting instead to let the coupon nearly double. The unusual decision was at least in part due to the bank standing to lose around €240 million ($260 million) if it redeemed the debt because of a weaker euro, according to CreditSights' Simon Adamson. The planned issuance will bolster the bank's regulatory capital, continuing its moves to strengthen its position amid ongoing restructuring efforts. AT1 is the first layer of debt to absorb losses if a financial institution runs into trouble. The yields on such securities have slid over the past year, indicating improving sentiment among investors. The bond is expected to be rated Ba2 by Moody's Ratings and BB by S&P Global Ratings. Deutsche Bank is acting as the sole bookrunner, the person familiar said. A representative for the Frankfurt-based lender didn't immediately reply a request for a comment. Issuer Profile Debt distribution: DBK GR Equity DDIS Capital structure: DBK GR Equity CAST Related securities: DBK GR Equity RELS Ratings history: DBK GR Equity CRPR This story was produced with the assistance of Bloomberg Automation A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing 'Buy American' ©2025 Bloomberg L.P. Sign in to access your portfolio
Euronews
13-02-2025
- Business
- Euronews
Commerzbank to cut jobs and boost profits in bid to fend off UniCredit
Commerzbank announced on Thursday it would cut 3,900 full-time positions by 2028 in a bid to boost its financial stability. The bank nonetheless added that hiring will take place in other 'selected areas', meaning the global number of full-time employees will remain constant at 36,700. The layoffs will predominantly affect staff in Germany, while hiring will take place in cheaper locations. Commerzbank's announcement was communicated in a financial update on Thursday, following the bank's publication of full-year earnings two weeks ago. Germany's second-largest bank brought in a record net profit of €2.68bn in 2024, an annual increase of about 20%. Revenues rose by 6% to €11.11bn, partially driven by growth in net commission income by 7% to €3.64bn. Net interest income also remained strong. The redundancy warnings come as Commerzbank is seeking to fend off a hostile takeover bid from Italian lender UniCredit. Partially through derivatives, UniCredit has built a 28% stake in the German lender, although Commerzbank's management is against a full-blown takeover. Both German banking officials and politicians fear that a merger could lead to job cuts and hinder lending to small and medium-sized businesses. Chancellor Olaf Scholz, at the end of last year, criticised efforts 'to aggressively acquire stakes in companies without any cooperation, without any consultation, without any feedback'. Andrea Orcel, CEO of UniCredit, said on Tuesday that the bank would launch a formal takeover bid once Germany had appointed a new government, following elections at the end of the month. If Commerzbank can strengthen its business prospects before then, the lender will find it easier to resist a takeover. The firm announced on Thursday that it is aiming to achieve a net profit of €4.2bn in 2028, along with a return on tangible equity of 15%. It said its cost-income ratio is expected to improve to around 50% in the same year, compared to last year's 59%. Looking at results for 2025, Commerzbank predicts a profit decline to €2.4bn due to restructuring costs equal to €700 million. The bank is nonetheless looking to boost dividends and shareholder payouts. Based on 2024 earnings, the lender is proposing a dividend of €0.65 per share, up from €0.35 last year. Commerzbank plans a payout ratio of more than 100% over the 2025 to 2028 period, after the deduction of restructuring costs and Additional Tier 1 (AT 1) bond coupons. In a separate release on Thursday, the German lender announced that it had launched a strategic partnership with Visa. Commerzbank customers will primarily receive Visa debit and credit cards, which the lender argued will 'make shopping abroad and online even easier for the bank's customers'.
