Latest news with #Sewing
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
RTÉ News
29-04-2025
- Business
- RTÉ News
Deutsche Bank posts 39% rise in Q1 profit but tariffs weigh
Deutsche Bank has today posted a 39% rise in first-quarter profit after its global investment banking division generated a big increase in revenue in bond and currency trading during volatile markets. The profit increase comes despite a writedown for a leveraged-finance deal and the bank's additional provisions for the possible impact of tariffs on clients. Germany's largest lender recorded net profit attributable to shareholders of €1.78 billion in the quarter, compared to €1.28 billion a year earlier, and exceeding analysts' expectations of €1.64 billion. The figures kick off a crucial year for Deutsche as it winds up a three-year plan and attempts to meet a series of targets that some analysts deem overly ambitious. The results "put us on track for delivery on all our 2025 targets," CEO Christian Sewing said. Sewing, who was awarded another term as the bank's CEO in March, is in the process of tweaking the bank's strategy and formulating targets for next year and beyond. With the first-quarter results, Deutsche has now cumulatively earned more in profit than it has lost over the last 10 years, and has made up for the hefty losses it posted between the years 2015 and 2019. Revenue in its fixed-income and currency trading, one of the bank's largest businesses, rose 17%, better than expectations for a 10.3% gain. Origination and advisory, after making big gains in recent quarters, saw an 8% drop in revenue. It posted a €90m writedown for an unnamed position in its leveraged finance business. Deutsche is one of several big European banks publishing its quarterly report card this week after a slew of strong earnings from their US counterparts. After US President Donald Trump unleashed a global trade war earlier this month, investors are watching how banks plan to navigate an anticipated slowdown in economic growth that could hit loan demand and their customers' financial health. "We have taken additional provisions to cover higher macroeconomic uncertainties caused by the tariff discussions and, as a result, our overall provisions were higher year-on-year," Sewing wrote in a memo to staff. Deutsche operates from Sydney to New York, but the economy of its important home market in Germany has been stagnating. The nation's top central banker warned last week that the German economy, Europe's largest, faces a possible slight recession in 2025, something that could eat into banks' profits and result in loan defaults by corporate clients. As Sewing strives to meet his ambitious profit and cost targets, some analysts remain sceptical about the bank's ability to meet all its goals. In January, Deutsche abandoned a key cost target.
Calgary Herald
28-04-2025
- General
- Calgary Herald
Parker: Calgary-based Sewing Seeds launches life-changing program in Uganda
Article content Rick Castiglione has produced hundreds of promotional videos and documentaries to help organizations and individuals who work to help improve the lives of others. Telling 'stories that matter' has taken him to more than 70 countries, and he recently returned to Uganda with one of his favourite charities. Article content Castiglione first met Sylvia Rempel — founder of Calgary-based Sewing Seeds — in western Ukraine, and since then has been on every one of its overseas missions to the seven countries it serves. Rempel was the founder of Sun Ice, which designed and manufactured clothing worn by Canada's first Everest expedition. Its success helped it win the contract as a supplier to the 1988 Winter Olympics. Article content Article content Her new journey began when 100 Huntley Street called to report a donation of 30 sewing machines — and asked if she would travel to Sierra Leone to teach women how to use them. Article content Her amazing experience in the troubled East African country, seeing how newly taught sewing skills could make such a difference to the lives of women, resulted in her founding Sewing Seeds. The organization provides a set of skills that could lead to financial security, healthy families and stronger communities, resulting in many women benefiting greatly from her passion to develop a sewing skills training program. It has transformed lives in areas she has visited, and has established sewing centres in Sierra Leone, Ukraine, Haiti, Peru, Mexico and Guatemala. Article content Article content Uganda is a new country for Sewing Seeds to support. Article content Castiglione has spent a lot of time in Africa, producing videos and escorting his safari tours. A considerable amount of his time has been in Uganda, where he met a woman in Nkuringo — a small, remote community in that country's south where he has spent a considerable amount of time — who shared that she had a heart to teach local women how to sew. Article content Recognizing how she could benefit from a Sewing Seeds program — which always needs a partner on the ground in any country — with the help of a not-for-profit organization in Uganda and his Rotary Club of Calgary Downtown, the newest Sewing Seeds Program has launched.
Yahoo
30-01-2025
- Business
- Yahoo
Deutsche Bank's Sewing to Cut Management Roles as Costs Rise
(Bloomberg) -- Deutsche Bank AG said it plans to reduce management roles and cut headcount over coming years, after higher-than-expected costs marred its results in the final months of last year. Manhattan's Morning Commute Time Drops With New Congestion Toll Trump's Federal Funding Pause Threatens State Financials Housing Aid Uncertain After Trump's Spending Freeze Memo US Students' Reading Scores Drop to Worst in More Than 20 Years Texas HOA Charged With Discrimination for Banning Section 8 Renters Expenses rose 14% from a year ago, overshadowing a better-than-expected performance in the investment bank, where fixed-income traders record their best fourth quarter on record. 'Our clear ambition is to operate the bank with a lower headcount, and we aim to run a much leaner platform,' Chief Executive Officer Christian Sewing said in prepared remarks Thursday. In the role for almost seven years, Sewing is balancing cost controls with investments in growth as he works to return more than €8 billion to shareholders over the medium term. He has built up parts of the investment bank in recent years, seeking to hire talent as a lull in dealmaking prompted rivals to cut back. Deutsche Bank said on Thursday that 'additional investments' mean it won't reach an initial target of keeping costs below 62.5% of income this year. Instead, it is now aiming for a ratio of below 65%. 'Deutsche Bank reported an underwhelming set of results,' analysts Thomas Hallett and Andrew Stimpson at KBW wrote in a note, adding that costs were 'more than offsetting a slight revenue beat.' Leaders of Deutsche Bank's various businesses are now being given more control over their cost base to help tackle inefficiencies. At the same time, the bank will 'actively reduce management layers and roles, and integrate teams,' Sewing said. In particular, scrutiny will be on 'areas where we do not see the required efficiency improvements.' Improving efficiency is key for Sewing as he seeks to boost returns to investors and lift the share price. Deutsche Bank said its plans €2.1 billion in capital distributions this year, including €1.3 billion in dividends and €750 million in share buybacks for which it has already received regulatory approval. 'We are already working on measures to further increase returns in the coming years,' Sewing said in a statement. Revenue from buying and selling fixed-income securities and currencies rose 26% in the fourth quarter, beating analysts' estimates. Income from advising on deals and stock and bond sales rose 71% as investments in the business paid off. The performance in the trading unit was broadly in line with that of the largest Wall Street peers. It was driven in part by a recovery of Deutsche Bank's U.S. rates business - the trading in government bonds and derivatives - as well as a strong financing business, which supplies credit to multinational companies. Revenue declined in the corporate and private bank, where falling interest rates and a weak economy weighed on income. Provisions for souring loans, at €420 million in the quarter, were roughly in line with estimates. Deutsche Bank said it expects such provisions to moderate this year, after it had to raise its guidance twice last year in a sign that Germany's economic troubles were spilling over into its loan book. Indy Pass, the Anti-Vail Seasonal Ski Ticket, Is Gaining Fans What America's Tech Billionaires Really Bought When They Backed Donald Trump Musk Pitches New Narrative as Tesla Sales Fall Forget Factories, Small US Towns Want Buc-ee's Gas Stations The CDC Won't Give the Public a Full Picture of Fertility Treatment Risks ©2025 Bloomberg L.P. Sign in to access your portfolio
Zawya
30-01-2025
- Business
- Zawya
Deutsche Bank posts weaker-than-expected profit and ditches 2025 cost target
FRANKFURT - Deutsche Bank on Thursday posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as legal provisions and restructuring costs eroded revenue gains at its global investment banking division. Deutsche, Germany's largest lender, also abandoned a key cost target, and it announced plans to buy back more shares. The bank recorded net profit attributable to shareholders of 106 million euros ($110.43 million) in the quarter, down from a profit of 1.26 billion euros a year earlier. It is worse than analyst expectations for a profit of around 380 million euros. For the full year, Deutsche recorded profit of 2.70 billion, down from 4.21 billion euros for 2023. That was worse than expectations of profit of nearly 3 billion euros. The results set the stage for a crucial year for Deutsche as Chief Executive Officer Christian Sewing seeks to meet a series of ambitious profit and cost targets he has set to further underpin the once-troubled bank. Some analysts have been sceptical that Deutsche will reach all its goals. The bank on Thursday abandoned a cost target for 2025, saying it wanted to make investments in business. It now aims for a cost-to-income ratio of below 65%, compared with previous plans for less than 62.5%. "We have always said that 2025 will be decisive for us. At the end of this year, we will be judged by whether we have been successful with our transformation and growth strategy," Sewing wrote in a memo to employees. The past year marked the fifth consecutive in the black after years of turmoil and losses. Even so, over the past decade the bank has still lost more than it has earned. A 15-quarter profit streak at Germany's largest lender was interrupted in the second quarter last year after it made a large provision for investor lawsuits at its Postbank retail division. Deutsche Bank is one of several big European banks publishing its quarterly report card in the coming weeks. European banks on the whole are expected to report a sharp rise in profits for the final three months of last year, helped by still-robust margins from lending and bumper investment banking revenues. ($1 = 0.9599 euros)
