The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Sideways: Banks get to mark their own balance sheet homework

Bank balance sheets are ballooning and regulators are just fine with that.

Deutsche Bank became the latest firm to warn that it will miss capital targets due to provisions and an expanded balance sheet, in a pre-announcement of its first-quarter earnings on Sunday April 26.

The big surprise in the release was that Deutsche will actually turn a profit for the first quarter. Revenue will be a higher than expected €6.4 billion and pre-tax profit €206 million – when many analysts had expected a loss of at least that amount.

Christian Sewing cartoon 300 

Christian Sewing leads a management team at Deutsche Bank with more credibility than recent incumbents

Deutsche said that its capital may fall “modestly and temporarily” below its common equity ratio target of at least 12.5%,

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree