Deutsche Bank AG will probably spin off its consumer bank to help it meet capital requirements, Reuters reported, citing people with knowledge of the proposal whom it did not identify.
The German lender’s supervisory board was briefed on three restructuring scenarios proposed by the management board at a meeting on Friday and favors one in which Deutsche Postbank AG and other consumer businesses would be grouped and spun off as a separate public company, Reuters reported on Saturday.
All of the scenarios would have an impact on the consumer bank, and no decision is expected until the end of April, one person cited by Reuters said.
The lender has sought to keep a full-fledged investment bank and consumer-lending unit since Deutsche Bank co-chief executive officers Anshu Jain and Juergen Fitschen took over in 2012, even as rising capital requirements hurt profitability.
The bank is completing a months-long strategic review to determine where it needs to trim operations to boost returns.
A person with knowledge of the discussions told Bloomberg News earlier this month that Deutsche Bank was considering selling Postbank and reducing client offerings at the retail and investment-banking divisions, which might lead to job cuts.
Deutsche Bank shares fell 24 percent last year, the most among the top nine global investment banks. About 7.1 billion euros (US$7.68 billion) of litigation expenses in the past three years have sapped its ability to build capital.
That pushed the bank to sell 8.5 billion euros of new shares last year to meet regulatory capital requirements and fund growth.
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops, but a lifeline for growers struggling to make ends meet in a city-state with high prices and little vacant land. The future agriculture hub is part of a joint special economic zone launched last year by the two neighbors, expected to cost US$123 million and produce 10,000 tonnes of fresh produce annually. It is attracting Singaporean farmers with promises of cheaper land, labor and energy just over the border.
A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while California Governor Gavin Newsom of the Democratic Party maneuvers to defeat a levy that he fears would lead to an exodus of wealth. A technology mecca, California has more billionaires than any other US state — a few hundred, by some estimates. About half its personal income tax revenue, a financial backbone in the nearly US$350 billion budget, comes from the top 1 percent of earners. A large healthcare union is attempting to place a proposal before
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