Deutsche Bank Gets Biggest Boost From Tiering, JPMorgan Says
- German lender may get savings equal to 10% of pretax profit
- Average savings across Europe seen at 2.5% of earnings
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Deutsche Bank AG will benefit the most by far from the European Central Bank’s new tiered deposit rate, JPMorgan Chase & Co. analysts led by Kian Abouhossein said Friday.
Germany’s largest lender stands to save roughly 200 million euros ($222 million) in annual interest payments thanks to a new rule that exempts a big chunk of the money it holds at the ECB from the negative rate the central bank charges on deposits. That’s equivalent to 10% of the pretax profit the analysts expect the bank to report in 2020, compared with an average of just 2.5% for the EU banks included in the analysis.