StockCall Scrutinizes Deutsche Bank AG and ICICI Bank Ltd.: Foreign Banks to
Face Stringent Fed Rules
LONDON, February 14, 2013
LONDON, February 14, 2013 /PRNewswire/ --
Foreign bank stocks provide an excellent way to diversify your portfolio.
While foreign banks have to comply with Fed regulations, these entities are
more closely tied by their home country regulations. In certain cases, even
Fed has different rules for domestic and foreign banks. Until now, foreign
banks had more relaxed capital adequacy norms. However, Fed is looking to
change the rules and foreign banks like Deutsche Bank AG (NYSE: DB) expressed
their resentment towards the changes. Foreign banks are also better cushioned
against regional changes. Banks like ICICI Bank Ltd. (NYSE: IBN) reported
solid quarterly results. StockCall reviewed the solar industry and chose
Deutsche Bank AG and ICICI Bank Ltd. for its technical coverage. These free
reports can be seen for free at http://www.stockcall.com/signup
Deutsche Bank Criticizes Fed Move
Deutsche Bank reported dismal quarterly results. Its net loss stood at $3
billion, down from net income of $241 million seen in the prior year's
quarter. The losses are mainly attributed to restructuring and litigation
charges. However, the bank reported higher revenues. It reported its full year
net income at $862 million, down from $5.6 billion for the previous year.
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Deutsche Bank is one of the leading European banks. However, its U.S.
operations are getting adversely affected by new Federal Reserve rules about
capital adequacy norms. The bank is apprehensive that new rules will have
negative impact on its margins. Fed now requires foreign banks to have the
same financial buffer as that of their American counterparts for their U.S.
Deutsche Bank reported better performance for its corporate banking and
securities segment, while its Asset and Wealth Management segment languished.
For its long-term viability, the bank is reducing its risk weighted assets. It
is also on track to confirm to Basel 3 risk norms. Deutsche Bank is expected
to take cost-cutting measures. It is also expected to reduce complexity.
Since, Europe is still struggling with its currency and other issues; the
bank's stock is unlikely to make any major upward move in the near future.
However, it is a good stock to consider for long-term investment.
ICICI Bank Delivers Solid Q3 Results
ICICI Bank is one of the leading banks in India and posted healthy results for
its third quarter. Its net income for fiscal third quarter jumped 30 percent
to $409 million. The bank is on an expansion spree and opened a number of new
branches, causing its operating expenses to increase by 18 percent. Even with
its global presence, the bank is mainly invested in India and is more
susceptible to policy changes in India regulatory environment. Register for
today's free analysis on ICICI Bank Ltd. at
The bank is heavily dependent on its domestic loan portfolio, making it
difficult for U.S. investors to assess its risk profile. However, it posted
good growth for loans and deposits and expects to retain this momentum. The
bank mainly works in high interest rate environment, putting pressure on its
performance. ICICI Bank stock has delivered 18 percent return in past 52
weeks. On the back of its solid quarterly results, the stock is likely to make
upward movements in the near future. It also offers 1.29 percent dividend
yield. However, investors should remain careful as foreign bank stocks are
more likely to react to policy changes in their home country and as such it
may be difficult to assess their risk profile.
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