Wednesday, May 14, 2008

Banking losses in Europe.

Credit market turmoils spread all over. I list major 4 major banking cases occurred in Europe due to subprime meltdown.

The largest Swiss bank UBS (UBS) writedowns almost 33 bln CHF in last 2 quarters. Shareholders approved capital increase by 15 bln CHF. Already second capital hike after 13 bln CHF from two foreign sovereign wealth funds. Shares price YTD down by 33%.

Credit Suisse (CS) faced first quarter losses in last 5 years (1Q 2008 with loss 2,15 bln CHF). For the same quarter in 2007 company made profit 2,7 bln CHF. From the beginning of year shares price fell down by 11% and market capitalization is now 62,6 bln CHF.

Royal Bank of Scotland (RBS) lost 5,9 bln GBP. In addition to subprime losses bank admits another bad investment decisions. Mainly acquisition of ABN Ambro Holding (together with Banco Santander and Fortis). 71 bln EUR for ABN Ambro was too ambitious. Royal Bank of Scotland announced last month a rights issue of 12 bln GBP. Shares price YTD down by 29%.

So far Deutsche Bank (DB) looked very resistant against turmoils. But Q1 showed different picture, losses 2,7 bln EUR. According to CEO Josef Ackermann April already shows signs of stabilization. For Deutsche Bank it was also first quartal loss since 2003. Shares price YTD down by 9%.

Comments

2 Responses to "Banking losses in Europe."

Barry said... May 14, 2008 at 10:54 PM

Those are some huge write-offs!

berto said... May 19, 2008 at 6:38 PM

Ive read this topic for some blogs. But I think this is more informative.