|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||325.84 - 329.15|
|52-week range||291.85 - 405.00|
|Beta (5Y monthly)||1.44|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.17 (5.22%)|
|Ex-dividend date||01 May 2020|
|1y target est||N/A|
(Bloomberg) -- Deutsche Bank AG may have defused a potential land mine in its still-fragile turnaround.A once-treacherous decision about whether to retire one of the bank’s riskiest bonds in April has almost become a nonevent amid signs of progress in the overhaul and overwhelming evidence of the lender’s ability to sell Additional Tier 1 notes in a red-hot market. The bank has also avoided much of the opacity that riled Banco Santander SA bondholders ahead of a similar AT1 call decision last year.“They’ve done everything right, particularly since this is an asset class that’s created so many problems for them in the past,” said Sebastiano Pirro, a portfolio manager at Algebris Investments. The upcoming AT1 call decision “won’t be a big deal either way,” he said. Pirro declined to comment on Algebris’s holdings.Potential market indifference about the call marks a sharp turnaround for the unprofitable lender, as its AT1s have been whipsawed for years by concerns about capital levels, coupon payments and the ability to sell new notes. It also reflects a focus on investor communication that has let the German lender sidestep the confusion and complaints triggered by Santander’s unprecedented skipped call.“I don’t think it matters hugely whether they call or not, as long as they don’t follow the same path as Santander,” said Filippo Alloatti, a senior credit analyst at Hermes Investment Management.Market regulations bar Deutsche Bank from indicating whether it will redeem the old AT1 before it issues an official call notice. The announcement can come as late as 25 days before the voluntary April 30 redemption date. If the $1.25 billion 6.25% bond is left outstanding, the coupon will reset to about 436 basis points over five-year swaps, which currently works out at about 5.7%.The bank has explained how it will decide whether to exercise the call, and made it clear that selling new AT1s doesn’t necessarily mean that old ones will be redeemed. It declined to comment on the call decision when contacted by Bloomberg News, including on whether it has received regulatory permission for a redemption.Step forwardOn Feb. 11, the bank bagged a bumper $14 billion order book as it sold a new $1.25 billion perpetual AT1, its first such offering since 2014. The sale extended a run of recent wins for Chief Executive Officer Christian Sewing, including a surge in fixed-income trading last quarter and a share-price boosting investment from U.S. fund manager Capital Group.“The AT1 issue is another step forward in the active, diligent balance sheet management we’ve been undertaking over the past three years,” Group Treasurer Dixit Joshi told Bloomberg News.READ MORE: Deutsche Bank Trading Surge Gives Comfort Six Months Into RevampStill, the bank will pay a 6% coupon on the bond, suggesting investors needed a hefty incentive to take on the risk amid continued losses and falling revenue at key units. The yield, which is now about 5.7%, is the highest for any outstanding AT1, based on Bloomberg Barclays index data.‘Deutsche Bank’s bondholders may have drawn comfort from the relatively muted price reaction to better-rated Santander’s howl-inducing AT1 rollover last year. The price of the extended note quickly recovered, and the Spanish lender had no difficulties selling a new issue this year.“In Santander’s case, the problem wasn’t the extension, it was the communication -- and Deutsche Bank is super focused on this,” Pirro said.To contact the reporter on this story: Alice Gledhill in London at email@example.comTo contact the editors responsible for this story: Hannah Benjamin at firstname.lastname@example.org, Neil Denslow, V. RamakrishnanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Following the departure of its CTO last month, Tandem Bank, the U.K. challenger bank co-founded by fintech veteran Ricky Knox, has lost another key member of its team: chief product officer Matt Ford, who is departing for a career in venture. Ford joined Santander InnoVentures, the venture capital arm of the Spanish incumbent bank, in December, TechCrunch has learned.
Investors who take an interest in Banco Santander, S.A. (BME:SAN) should definitely note that insider Ramiro Mato...
Global equity markets closed little changed on Wednesday as strong results from Apple and others provided a lift, but concerns about the coronavirus outbreak in China kept enthusiasm in check and a safe-haven bid in gold and the dollar alive. The yield on benchmark U.S. Treasuries and German bunds fell as foreign governments evacuated citizens from the virus' epicenter in China and the World Health Organization voiced "grave concern" about person-to-person infection in three countries. The death toll in China from the virus rose by 27 to 133, and another 1,459 cases were confirmed.
Global equity markets edged higher on Wednesday on strong results from Apple and others but concerns about the coronavirus outbreak in China kept a safe-haven bid in gold and the dollar alive. A Chinese government economist said the outbreak could cut China's first quarter growth by one point to 5% or lower as the crisis hits sectors from mining to luxury goods. Investors took in stride the Federal Reserve's first policy meeting of the year as it left interest rates unchanged.
* Wall Street opens higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. The pan-European index gained 0.5%, helped by the industrial goods and service index and by the real estate sector, which was up 1% on reports that the UK house price growth picked up in January. During the day, strong results from Santander lifted European banks and gains in Apple helped suppliers.
* Wall Street opens higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. With the UK finally leaving the EU on Friday night, traders will probably need to adjust to a brave new world little twist and turn on the negotiations with Brussels won't make so much of an impact on sterling. "Progress in negotiations can no longer be seen as an unambiguous positive as they have been over the last couple of years, and vice versa", they write in a UK economics note.
* Apple suppliers in demand as iPhone back to growth Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Global leaders and corporations are trying to cut down their carbon footprint, activists are pushing for a swift action to save the planet from burning or drowning and meanwhile banks are hunting for investment opportunities. From one trillion dollars to a two-trillion-dollar market in a span of five years -- that's the speed at which climate solutions market is expected to grow and watch out for renewable energy, electric vehicles, batteries and biofuel companies, BofA says.
* Apple suppliers in demand as iPhone back to growth Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. If the Fed's expansive policy is really the main agent behind the longest bull market in history, then why would the U.S. central bank let a virus spoil the end of the cycle (assuming there's is actually an end to 'lower forever').
Global markets showed more signs of stabilisation on Wednesday as investors looked past China's coronavirus outbreak and moved back into shares from safe-haven assets such as the yen and German bonds. Equity futures suggest a stronger open for U.S. shares, with the tech-heavy Nasdaq up 0.5% .
* Apple suppliers in demand as iPhone back to growth Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Interesting to note that the travel and leisure index has been rising in sync with the STOXX 600 this morning, as the market continues its recovery (or gets complacent -- you choose) after Monday's big coronavirus scare. "As we highlight earlier in this report, the impact from the Novel Coronavirus may impact travel demand, but historically air volumes were resilient in the UK and Europe during the SARS epidemic".
* Apple suppliers in demand as iPhone back to growth Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. What's really more concerning is the constant pace at which earnings expectations are sliding down to a point where the awaited end of Europe's corporate recession is becoming somewhat elusive.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Banco Santander SA expects to reach the higher end of its target for capital this year as the Spanish lender seeks to dispel persistent concerns that it needs to boost its financial strength.The bank forecasts that its phased-in Common Equity Tier 1 capital ratio -- a closely watched metric -- will rise to close to 12% this year after gaining to 35 basis points in the fourth quarter to 11.65%. The lender made the capital estimate after earnings jumped in the fourth quarter, beating estimates on rapid growth in Latin America and the sale of a unit.While the bank’s international reach has allowed it to mitigate the effect of low interest rates in its home market of Spain, investors often point to its capital levels as an area of concern. As of the end of September, the lender had one of the lowest CET1 ratios among its European peers and the lowest surplus over European Central Bank capital requirements among 10 banks reviewed by Bloomberg.Chairman Ana Botin has argued that Santander’s core capital levels are appropriate for a business focused on lending rather than more volatile investment banking. The company also points out that its earnings volatility is among the lowest among other major banks. It targets a range of between 11% and 12% for the ratio.The shares gained as much as 4.6% in early trading in Madrid on Wednesday and were 3.5% higher at 3.67 euros as of 11:21 a.m. local time.Spanish banks have struggled to meet ECB demands that they provide financial buffers to protect the financial sector against another crisis. Santander said that of the record 97 basis points in organic capital growth generated last year, 62 basis points were swallowed up by tougher regulatory requirements.“We’re very confident that we’re in a good place, not just with the level but also with the buffer,” Botin said in a Bloomberg TV interview. “Generating 97 basis points of capital shows the model is working.”In a sign that the bank is still cautious on capital, Santander said that about a third of its second dividend for 2019 will be paid in shares rather than cash. The bank is offering 0.13 euros per share, of which 0.03 euros per share will paid through a so-called scrip dividend.What Bloomberg Intelligence Says:A CET1 beat and capital confidence that will begin to remove solvency fears, we suspect. Along with a solid but unexciting set of full-year results, this should stem, and potentially begin to unwind, the sector’s near-20% underperformance during the past 12 months.\-- Georgi Gunchev, BI banking analystClick here to read the full storySantander is increasingly leaning on Latin America’s growing economies to bolster earnings amid lackluster growth in Europe. South America and Mexico combined accounted for 42% of the group’s underlying profit for the full year while Europe delivered 47% and the U.S. 7%. The bank is investing more of its capital in the regions, buying out minority shareholders in Mexico and snapping up smaller rivals in Brazil.Meanwhile, it’s cutting costs in Europe, shuttering branches in the U.K., Poland and Spain. Underlying profit was flat in the U.K. as net interest income fell 5%. Santander UK has been particularly hard hit by regulations that force banks to separate retail and investment-banking operations, which inadvertently created more competition in the country’s mortgage market.In a sign that negative rates are biting in Spain, net interest income was down 11% in the bank’s home market. Profit and fees both fell 2% in the country.The bank’s earnings were boosted by a capital gain of 711 million euros ($782 million), primarily from the sale of its custody business to Credit Agricole SA, which agreed in April to take over Santander’s main custody and asset-servicing operations. That created a joint venture with 3.34 trillion euros of assets under custodyHere are some highlights from Santander’s earnings report:Full year net income fell 17% to 6.5 billion euros; full-year underlying profit rose 2% to 8.3 billion eurosBank had record year in revenues of 49.5 billion eurosNet interest income for the group fell 2%; fee income rose 0.2%CET1 ratio strengthened by 35 basis points to 11.65%; if future IFRS9 requirements are applied, the rate would be 11.42%(Updates with Botin comment in seventh paragraph)To contact the reporter on this story: Charlie Devereux in Madrid at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Ross Larsen, Charles PentyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Spain's IBEX led regional bourses, lifted by a 4.4% rise in Santander after the lender posted a higher quarterly net profit, boosted by solid underlying performance in its main market Brazil and capital gains. Boeing supplier Safran was also a major boost to the pan-region index after the planemaker's shares rose despite a surprise annual loss with analysts saying much of the bad news had been priced in.. After a recovery day on Tuesday, the pan-European STOXX 600 and most major country indexes traded not more than half a percent higher as sentiment still remained subdued on worries over the economic damage from the flu-like virus that originated in China.
Spain's Santander boosted its capital ratio in 2019 and will target a further increase in 2020, the bank said on Wednesday, lifting its shares, as a solid underlying performance in Latin America offset sluggishness in Britain and Spain. Santander's diversification overseas, especially in Brazil and Mexico, has helped it cope with tough conditions for lenders in Europe in the years since the financial crisis, but its has consistently had weaker solvency ratios than its European peers. The bank had said in the previous quarter that it was aiming to end 2019 with a capital ratio of 11.4% to 11.5%, but on Wednesday struck a more bullish tone saying its CET1 capital ratio had risen by 35 basis points to 11.65% and was expected to end 2020 close to 12%.
* European shares 0.4% lower, Milan outperforms * Travel stocks top sectoral decliners * STMicro and Novozymes at multi-yr highs after estimate-beating results * ECB keeps policy unchanged, eyes on strategic review Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. "One reason might have been that she declined on a few occasions to distance herself from negative interest rates," ING Senior Rates Strategist Antoine Bouvet says. Lagarde said she was neither a policy hawk nor a dove, but rather an owl, who will use her wisdom.
* European shares 0.4% lower, Milan outperforms * Travel stocks top sectoral decliners * STMicro and Novozymes at multi-yr highs after estimate-beating results * ECB keeps policy unchanged, eyes on strategic review Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: email@example.com CHANGES IN ECB STATEMENT: "STRATEGIC REVIEW" THE ONLY CHANGE (1307 GMT) No major reaction in FX, bonds or stocks after the ECB kept its monetary policy unchanged. Here's the ECB statement with changes underlined: (Thyagaraju Adinarayan and Ritvik Carvalho) ***** WILL CORONAVIRUS INFECT AIRLINES?
* ECB rate decision later today Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. One way to assess possible risks of the new Coronavirus outbreak for the European airlines industry is to look at the damage from past global virus crisis (H1N1, SARS and Ebola). Credit Suisse has done so and although the severity of the latest outbreak is uncertain for now, global virus overall had "little historical impact" on the industry.
* ECB rate decision later today Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. If you take a look at the Spanish index, you might be surprised that banks are doing well today after Bankinter, Spain's fourth biggest bank by market value, said its profit went down 13% in Q4.
Lloyds Banking Group’s 49.9% overdraft interest rate is the highest announced to date, following a ban on excessive fees demanded last year by the City regulator.
Could Banco Santander, S.A. (BME:SAN) be an attractive dividend share to own for the long haul? Investors are often...
Britain's finance ministry has canvassed banks for ideas to boost the country's "left-behind" northern towns and cities, weeks after the governing Conservatives won an election promising to boost the regions outside London. The call comes as figures show lending by banks to small and medium sized businesses has shrunk rapidly in the north of England. Treasury officials have requested policy ideas for fuelling growth in the north of England in meetings with banks and finance industry trade bodies including since the new year, banking industry sources told Reuters.
Britain's markets watchdog told financial advisers on Tuesday they face a two-year crack down to stop unsuitable advice, investment scams and excessive fees. The Financial Conduct Authority (FCA) said in a "Dear CEO" letter to heads of financial advice firms it regulates that the sector has a valuable role to play. "However, we are seeing an increasing number of cases where the actions of firms are resulting in significant harm to consumers’ financial well-being," said Debbie Gupta, the FCA's director of financial advice supervision, in the letter.