The German Bank could make in the past fiscal year, for the first time since 2014 a profit – however, the American competition is already well ahead. How should it go further?
In these Figures, a fear and worry can become Deutsche Bank. American large banks such as Citigroup, Wells Fargo, Bank of America, Goldman Sachs and JP Morgan were able to report in this week profits in the amount of almost $ 110 billion for 2018. Alone the industry leader JP Morgan increased its profit by more than a third of the 31 billion dollars (27 billion euros). For comparison: The current market value of Deutsche Bank is located at just 15 billion euros.
Improvement is not in sight. For the balance sheet presentation of the largest German Bankin two weeks, the analysts expect a Surplus of around 400 million euros – so much money JP Morgan earns in just five working days.
Bad Omen
As a particularly bad Omen for the German Bank, can apply the fact that the American competitors had in trading bonds, currencies and commodities, even great difficulties. In these divisions – the few, the Deutsche Bank earns money – not the business in the last quarter of the year is so weak since the financial crisis. Despite the record, the Figures for the year as a whole therefore remained behind the expectations of many experts. Even without the US President Donald Trump initiated tax reform, there would have been, according to JP Morgan boss Jamie Dimon a record profit.
Christian Sewing – Chairman of the management Board of Germany’s largest money house is strikingly optimistic.
Regardless of these Figures, and the sharp fall in the Price of its shares of around 100 Euro in 2006 to under 10 euros in 2018, Deutsche Bank is one of the large and powerful institutions in Europe. You have high reserves and have a grip on the costs, market and credit risks are as low as ever before, said the Chairman of the Board Christian Sewing recently at the capital reception of his house. Also, the legal risks have been reduced, the Bank significantly in recent years – a area, costs in the on the basis of legal violations and resulting penalties and damages claims in the billions.
Chairman of the Board is to be self-aware
“We want to dispel the grounds for suspicion in connection with the Panama Papers as soon as possible,” said Sewing, in this context, and emphasized that there were no indications of misconduct in his house, in the case of Danske Bank, as in the case of Panama Papers to the suspicion of money laundering.
“We are by far the largest Bank in the largest economy in Europe. We are one of the four systemically important banks in the world,” proclaimed Sewing self-conscious, and clung to that “system of relevance” for a long time is not a quality feature, but even as a threat (too-big-to-fail) understood.
The US Bank JP Morgan Chase is well ahead of its competitors from Germany.
Fusion fantasies drift in share prices
Speculation about a merger with Commerzbank Sewing did not, however, – the got on Wednesday (16.01.2019) new food: On the German stock market, Deutsche Bank and Commerzbank were in the spotlight. The “Handelsblatt” according to the Federal government, which holds shares as a result of the financial crisis is still 15 percent, the Commerzbank advertises, behind-the-Scenes for a merger of the two money houses.
In the share prices of the two banks came after a Bloomberg report this afternoon, according to the European final with a European credit institution prefer Central Bank (ECB) and the financial Supervisory authority BaFin. Shares of Deutsche Bank, shot up 8.4 percent to 8.11 euros in the height. Thus, they traded as high as for almost five weeks and were by far the biggest Dax winner. Commerzbank stocks gained 7.4 percent.
But behind such rate increases in the hope of quick profits is not more likely, to the sustained sense of such a merger, the investors believe. “In principle, we are of the opinion that a merger between Deutsche Bank and Commerzbank is currently neither necessary nor sensible”, cited the “Handelsblatt”, a big shareholder. Prompt prices softened again on Thursday.
Unions remain skeptical
Of one of the two most important German commercial banks to go to keep the trade unions too little. They fear removal of a significant job, but at the same time, no strengthening of the business models. “Both houses have their own, very different kinds of problems,” says Stephan Szukalski, head of the Union DBV. These are not problems you solve with a merger, but potenziere you. “Such a Structure would be employed for many years with himself, with an uncertain outcome, and thus the worst solution for employees, customers, shareholders and also for the taxpayer.”
However, since the development in the financial markets, the refanzierung costs for banks since December to rise sharply and the U.S. competition appears to be almost overpowering, according to Insider Reports, all Parties agree that in the next twelve months in the case of the German Bank “is something only what needs to happen” -?