Latest news with #ChristianSewing
Business Times
23-05-2025
- Business
- Business Times
Deutsche Bank plans SRT deal tied to US$3 billion corporate loans
[BERLIN] Deutsche Bank is selling a significant risk transfer (SRT) linked to a portfolio of US$3 billion in corporate loans, according to people with knowledge of the matter, the latest deal to drive this market toward record volumes this year. The size of the SRT is around 8 per cent of the portfolio, or about US$240 million, with the loans in both North America and Europe, the people said. The notes will form part of the lender's Craft programme, they added, asking not to be identified because the deal is private. A representative for Deutsche Bank declined to comment. SRTs allow banks to essentially buy insurance on debt, freeing up capital, while still keeping the assets on their balance sheets. The transactions involve selling notes to funds in exchange for yields that can frequently top 10 per cent, with the investors agreeing to absorb some losses if the loans go bad. Other European banks currently discussing SRT deals include Banco Santander, BNP Paribas and UniCredit. Demand for such instruments remains largely unaffected by the recent bout of volatility in public financial markets. In March, Deutsche Bank priced a US$560 million SRT deal out of its Craft programme at a spread of 750 basis points over the secured overnight financing rate, data compiled by Bloomberg show. The lender also priced an SRT deal tied to a portfolio of loans to German mid-cap companies, chief executive officer Christian Sewing said on an April 29 earnings call. 'There was also no noticeable repricing required. So, actually, there is a lot of demand,' said Sewing on the call, replying to a question about the potential impact of economic uncertainties on demand for SRTs. SRT are among the tools Deutsche Bank is using for its plan to reduce its risk weighted assets by 25 billion euros (S$36.4 billion) to 30 billion euros by the end of the year, a goal the lender may 'overachieve,' Sewing told analysts. The rising popularity of SRTs means deals may hit record volumes this year. Chorus Capital Management, which invests in SRTs, projects global issuance to grow to as much as US$35 billion, compared with an estimated US$29 billion last year, with the lion's share taking place in Europe. UniCredit is working on at least three SRTs tied to loan portfolios totalling around 4.2 billion euros, while Santander is discussing another three to offload risk from its loan portfolios in Spain, Denmark and the UK. BNP Paribas is also in talks to sell an SRT linked to a portfolio of about 10 billion euros in corporate loans. BLOOMBERG
Bloomberg
22-05-2025
- Business
- Bloomberg
Deutsche Bank Hits Pause on Oil Restrictions, Citing Legal Risks
Deutsche Bank AG won't move ahead with a plan to add restrictions on financing oil and gas, as it assesses the legal risks of doing so, according to its chief executive. 'The legal environment has changed, and we are currently analysing this in detail in order to minimise potential risks for the bank,' CEO Christian Sewing told shareholders at Deutsche Bank's annual general meeting on Thursday.
Reuters
22-05-2025
- Business
- Reuters
Deutsche Bank CEO calls 2025 a 'year of reckoning'
FRANKFURT, May 22 (Reuters) - Deutsche Bank ( opens new tab CEO Christian Sewing called 2025 a "year of reckoning" in remarks he planned to deliver on Thursday to shareholders demanding details on the path forward for Germany's largest lender. The bank's management and shareholders were facing off at Deutsche's annual general meeting with the lender in the final stretch of a three-year plan, attempting to meet a series of targets that some analysts deem overly ambitious. "We know how important 2025 is for us as a bank. It is the year of reckoning," Sewing planned to tell shareholders, according to a copy of his remarks released ahead of the speech. Among the targets, Deutsche Bank is aiming for a cost-to-income ratio of less than 65% and a so-called return on tangible equity - a key measure of profitability - of more than 10%. Analysts believe Deutsche Bank will miss both, based on a consensus forecast published this week by Deutsche. The bank is "clearly on track", Sewing was expected to say. Andreas Thomae of Deka Investment, also due to speak at the meeting on Thursday, was expected to call on Deutsche Bank to ensure a bigger share of profits come from stable business areas like the retail bank, rather than the volatile investment bank. As part of an overhaul in 2019, Deutsche Bank set out to rely less on revenue from the investment bank, but the results of that aim have been mixed. "You must finally deliver what you have been promising us for years," Thomae said, according to an advance copy of his remarks.
Yahoo
22-05-2025
- Business
- Yahoo
Deutsche Bank CEO calls 2025 a 'year of reckoning'
FRANKFURT (Reuters) -Deutsche Bank CEO Christian Sewing called 2025 a "year of reckoning" in remarks he planned to deliver on Thursday to shareholders demanding details on the path forward for Germany's largest lender. The bank's management and shareholders were facing off at Deutsche's annual general meeting with the lender in the final stretch of a three-year plan, attempting to meet a series of targets that some analysts deem overly ambitious. "We know how important 2025 is for us as a bank. It is the year of reckoning," Sewing planned to tell shareholders, according to a copy of his remarks released ahead of the speech. Among the targets, Deutsche Bank is aiming for a cost-to-income ratio of less than 65% and a so-called return on tangible equity - a key measure of profitability - of more than 10%. Analysts believe Deutsche Bank will miss both, based on a consensus forecast published this week by Deutsche. The bank is "clearly on track", Sewing was expected to say. Andreas Thomae of Deka Investment, also due to speak at the meeting on Thursday, was expected to call on Deutsche Bank to ensure a bigger share of profits come from stable business areas like the retail bank, rather than the volatile investment bank. As part of an overhaul in 2019, Deutsche Bank set out to rely less on revenue from the investment bank, but the results of that aim have been mixed. "You must finally deliver what you have been promising us for years," Thomae said, according to an advance copy of his remarks.
Bloomberg
15-05-2025
- Business
- Bloomberg
Deutsche Bank Says It's Applying for Second Share Buyback
Deutsche Bank announced another share buyback as part of its plan to hike shareholder distributions. 'We have applied to the European Central Bank for a further share buyback for the second half of the year,' Chief Executive Christian Sewing said in a pre-released version of a speech he's due to give at the lender's shareholder meeting on May 22.
