Weekly Global News Wrap: Commerzbank profits better-than-expected; Goldman Sachs raises financial targets
And US investment banks turn bullish on China.
German lender Commerzbank reported better-than-expected fourth-quarter and annual net profit despite a major overhaul and painted a rosy picture for its 2022 outlook.
Profit this year is expected to exceed $1.14b, Commerzbank said, beating analyst forecasts. It added that it would pay a dividend for the year and said share buybacks are possible as early as next year.
Goldman Sachs CEO David Solomon has raised the company’s medium-term financial targets.
Goldman’s new guidance for returns on tangible common shareholders’ equity is 15% to 17%, up from the 14% target the bank had set in 2020. Still, the firm far exceeded those targets in 2021, when returns topped 24%.
The bank also increased its 2024 targets for gathering investments and fees in asset management and wealth management as well as transaction and consumer banking revenues.
More and more international investment analysts say it’s time to buy mainland Chinese stocks, ahead of expected government support for growth.
Analysts from Credit Suisse, UBS, HSBC, Goldman Sachs and Bernstein all reported positive outlooks for China’s investments.
However, not all banks are optimistic, Morgan Stanley’s Asia emerging markets stock strategy team is neutral on mainland China, as are Bank of America and J.P. Morgan Asset Management