Deutsche Bank subpoenaed over Trump's financial records, NY Times reports » 12:0608/0608/06/20
New York prosecutors have…
New York prosecutors have subpoenaed President Trump's financial records from his longtime lender Deutsche Bank in a criminal probe, The New York Times' David Enrich, Ben Protess, William K. Rashbaum and Benjamin Weiser report. The Manhattan District Attorney's office last year issued the subpoena for records that Trump and his company provided to the bank, according to four people familiar with the inquiry, with two people adding that the bank handed over financial statements and other records Trump had given it when he was seeking loans. Reference Link
OCC announces $80M civil money penalty against Capital One » 11:0908/0608/06/20
The Office of the…
The Office of the Comptroller of the Currency, or OCC, announced that it has assessed an $80M civil money penalty against Capital One, N.A., and Capital One Bank N.A. "The OCC took these actions based on the bank's failure to establish effective risk assessment processes prior to migrating significant information technology operations to the public cloud environment and the bank's failure to correct the deficiencies in a timely manner. In taking this action, the OCC positively considered the bank's customer notification and remediation efforts. While the OCC encourages responsible innovation in all banks it supervises, sound risk management and internal controls are critical to ensuring bank operations remain safe and sound and adequately protect their customers," the OCC stated.
Capital One lowers dividend to 10c from 40c per share » 08:3708/0308/03/20
On Friday after the…
On Friday after the market close, Capital One Financial announced a quarterly dividend of 10c per share payable August 20 to stockholders of record as of August 10. On April 29, Capital One Financial had announced a quarterly dividend of 40c per share payable May 21 to stockholders of record as of May 11.
|Over a week ago|
Deutsche opens review into personal banker to Trump, Kushner, NY Times reports » 16:3508/0208/02/20
Deutsche Bank has opened…
Deutsche Bank has opened an internal investigation into the longtime personal banker of President Trump and his son-in-law, Jared Kushner, over a 2013 real estate transaction between the banker and a company part-owned by Kushner, The New York Times' Jesse Drucker and David Enrich report. Reference Link
Capital One initiated with an Outperform at Wolfe Research » 09:3007/3107/31/20
Wolfe Research analyst…
Wolfe Research analyst Bill Carcache initiated coverage of Capital One with an Outperform rating and $105 price target. Carcache has rolled out coverage of mid-cap regional banks at Market Underweight, saying his cautiousness on the group is based on their "anemic" top-line growth outlooks in a zero interest rate environment, though he does see some attractive relative value within the group. He started the consumer finance stock group at Market Overweight, based on his view that they will benefit from declining credit headwinds and "greater top-line torque" on the path to normalized earnings in 2022.
Deutsche Bank price target raised to EUR 7.50 from EUR 7 at Morgan Stanley » 13:1907/3007/30/20
Morgan Stanley analyst…
Morgan Stanley analyst Magdalena Stoklosa raised the firm's price target on Deutsche Bank to EUR 7.50 from EUR 7 and keeps an Underweight rating on the shares.
Deutsche Bank still sees FY20 provision of credit losses 35-45bps of loans 06:1307/2907/29/20
Deutsche Bank reports Q2 net profit EUR61M vs. (3.1B) last year » 06:1307/2907/29/20
Reports group pre-tax…
Reports group pre-tax profit of 158 million euros, versus pre-tax loss of 946 million euros in 2nd quarter of 2019. Provision for credit losses of 761 million euros, consistent with management expectations. Reports Group net revenues up 1% to 6.3 billion euros despite exit of Equities, with Core Bank net revenues up 6% to 6.4 billion euros, up 8% to 6.3 billion euros ex-specific items and Investment Bank net revenues up 46%, up 52% ex-specific items. Christian Sewing, CEO, said: "In a challenging environment we grew revenues and continued to reduce costs, and we're fully on track to meet all our targets. This enabled us to more than offset higher provision for credit losses and remain profitable while supporting clients through difficult conditions. Our strong capital position not only demonstrates our resilience, but also gives us scope for growth."
Deutsche Bank seeks to exit global business activities in coal mining by 2025 » 14:0007/2707/27/20
DB, ACI, ANR, ARLP, CNX, BTU, CLD
Deutsche Bank (DB) has…
Deutsche Bank (DB) has adopted a new Fossil Fuels Policy which provides its business divisions with a strict framework for their business activities involving coal, oil and gas. This means that Deutsche Bank will end its global business activities in coal mining by 2025 at the latest in order to help drive the transformation to a sustainable economy. This Policy covers financing as well as capital market transactions. Previously, the bank had set itself a three-year objective of reducing its loan exposures to coal-fired power plants by 20 percent. It achieved this goal at the end of 2019. In addition, Deutsche Bank has signed the so-called Equator Principles - a risk management framework for assessing the environmental and social risk of financing projects. The principles ensure that strict environmental and social standards are applied during the project development and construction process, including follow-up monitoring. Having already adopted the World Bank Group's International Finance Cooperation's (IFC) performance standards, Deutsche Bank's due diligence process is already indirectly in line with the Equator Principles in the majority of cases. Publicly traded companies in the coal space include Albertsons (ACI), Alliance Resource Partners (ARLP), Alpha Natural (ANR), CNX Resources (CNX), Peabody Energy (BTU) and Symbol changed to CLDP (CLDP).
Fly Intel: What to watch in credit card space earnings reports » 14:5607/2307/23/20
AXP, V, MA, BITCOIN, GBTC, BTC, JPM, BAC, COF
American Express (AXP),…
American Express (AXP), Visa (V), and MasterCard (MA) are scheduled to report quarterly results on July 24, 28, and 30, respectively. What to watch for: 1. 'SPEND-DRIVEN' MODEL TO REMAIN PRESSURED: Last week, JPMorgan analyst Richard Shane downgraded American Express to Underweight from Neutral with a price target of $97, down from $100. The company's "spend-driven model" is likely to remain pressured as high-income consumers reduce discretionary and leisure travel spend and corporate budgets remain pressured into the first half of 2021, Shane contended. The analyst added that the potential share return for American Express shares is at low end of the sector coverage. 2. 'STRONG' SECULAR GROWTH TRENDS: On July 14, Goldman Sachs analyst Matthew O'Neill initiated coverage of both Visa and MasterCard with Buy ratings and price targets of $223 and $364, respectively. He also added the latter to the Goldman's Conviction List with 26% upside potential. The analyst said he favors companies with "strong secular growth trends" and those with the opportunity for total addressable market expansion. Further, COVID-19 will accelerate greater adoption of contactless payments and e-commerce, benefiting the networks, acquirers and processors, O'Neill contended. He believes Visa's business model is differentiated both in payments and across sectors, and thinks MasterCard's core consumer growth will likely outpace peers given its exposure to Europe and growth markets. 3. FINICITY ACQUISITION: Last month, Mastercard announced it has entered into an agreement to acquire Finicity, a provider of real-time access to financial data and insights. Mastercard said in a release, "The purchase price is $825 million, and Finicity's existing shareholders have the potential for an earn-out of up to an additional $160 million, if performance targets are met.... Following the completion of the transaction, Mastercard's existing technology and expertise combined with Finicity's new analytics platforms, will help streamline the credit decisioning process for consumers and small businesses. Additionally, the integration of Finicity's account owner verification tools to Mastercard's New Payment Platform capabilities will deliver an improved ACH and real-time payments experience to consumers, merchants and businesses." Commenting on the deal, Wells Fargo analyst Donald Fandetti said he believes the acquisition of Finicity will enable MasterCard to provide open banking capabilities in the U.S., building on its progress in regions such as Europe. The analyst also noted that Finicity's infrastructure already provides connectivity with thousands of banks in the US. Large banks such as Chase (JPM), Bank of America (BAC), Capital One (COF) have agreements with the company, Fandetti added. 4. CRYPTO-CARD PARTNER PROGRAM: MasterCard has announced in a statement that, "the expansion of its cryptocurrency program, making it simpler and faster for partners to bring secure, compliant payment cards to market. Supercharging the partnership experience, cryptocurrency and crypto card partners are invited to join Mastercard's Accelerate program for emerging brands and fintechs, giving them access to everything they need to grow quickly. The move comes as Wirex becomes the first native cryptocurrency platform to be granted a Mastercard principal membership, allowing it to directly issue payment cards."