Just eight of the world’s 150 largest quoted banks post share price rises for the period 1 January to 30 June. As Douglas Blakey reports, Deutsche Bank is, somewhat surprisingly given its recent history, among the banks in positive territory
Let us deal first with the banks showing share price gains, as it is a short list to discuss.
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Shares in Turkish lender Finansbank, acquired by Qatar National Bank from National Bank of Greece in 2015 and subsequently rebranded as QNB Finansbank, are ahead by 24.3% for the year to date.
Online trading and banking platform FinecoBank is also enjoying a strong first half: shares in the Italian firm, spun out of UniCredit, are up by 13.3%.
Three Taiwanese lenders in positive territory
The prices at three Taiwanese lenders, Mega Financial, E Sun and Taiwan Cooperative are also in positive territory, as is the case at Swiss-based Bank Cantonale Vaudoise.
The strongest performer of note in the first half is India’s IDBI Bank. For the period 1 January to 30 June, IDBI’s share price is ahead by 37%.
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By GlobalDataIt ranks just outside the top 150 with a market cap of $7.1bn, but its share price hit a 52-week high in June, coinciding with news that it was to sell more than half of its stake in insurer IDBI Federal Life.
Of the world’s major banks, the most notable share price gain is Deutsche Bank, reversing years of decline.
Deutsche Bank has tumbled down all rankings of the world’s major banks by market cap since the financial crisis. Its market cap peaked in 2007 at over $75.4bn; in the first quarter this year, it slid to little more than $12bn.
Deutsche’s six-year losing streak
Since then, the Deutsche Bank share price has risen by more than 60% to just over $20bn as its restructuring plan shows sign of progress.
Whether Deutsche Bank can maintain its progress is a regular talking point among analysts, with a near consensus that it will not hit its 2022 revenue or profit targets.
Fiscal year 2020 is likely to be the sixth in a row that Deutsche reports a loss, with estimates ranging at €1.5bn-2.0bn ($1.69bn-2.26bn).
But for once, as Deutsche wins plaudits for its strategy of cutting more costs and jobs, and scaling back investment banking, its share price is not among the biggest losers: Wells Fargo wins this unwanted prize, down by 51.5%. But it is a close-run thing, with Société Générale down by 50.1% and now, surely temporarily, not even ranking in the top 100 banks by market cap.
