QUOTE AND NEWS
The Times of India  12 hrs ago  Comment 
FINANCIAL-MOVES/:MOVES-Deutsche Bank, Colliers, FTI Consulting, Mitiska
Reuters  Mar 21  Comment 
A federal judge on Tuesday said investors seeking to hold Deutsche Bank AG liable for causing $3.1 billion of losses by failing to properly monitor 10 trusts backed by toxic residential mortgages cannot pursue their claims as a group.
guardian.co.uk  Mar 21  Comment 
Deutsche Bank among western institutions that processed billions of dollars in cash of ‘criminal origin’ through Latvia The German bank that loaned $300m (£260m) to Donald Trump played a prominent role in a money laundering scandal run by...
Yahoo  Mar 21  Comment 
Deutsche Bank AG (DBKGn.DE) has opened a new center in New York to work with financial technology startups that can help it improve its technology. Based in Lower Manhattan's Fulton Center, the lab's team will help the bank deploy technology in...
newratings.com  Mar 21  Comment 
FRANKFURT (dpa-AFX) - Deutsche Bank AG (DB) is expected to be fined by the Federal Reserve and New York's Department of Financial Services for its conduct in the foreign exchange market, Bloomberg reported citing a person familiar with the...
Clusterstock  Mar 21  Comment 
Deutsche Bank is opening the door to Wall Street startups. The German bank, which is one of the last big financial firms to be based in the historic heart of New York finance near Wall Street, has opened a new innovation lab in the area as...
CNNMoney.com  Mar 20  Comment 
Deutsche Bank, the Trump Organization's largest creditor, said Monday that the Justice Department recently closed a criminal investigation into possible currency manipulation.
Yahoo  Mar 20  Comment 
Deutsche Bank (DBKGn.DE) announced details of its latest bid for cash on Sunday, as it turned for the fourth time to investors, many of whom have privately expressed exasperation with its strategic shifts and heavy losses in recent years. The...




 
TOP CONTRIBUTORS

Deutsche Bank AG (NYSE:DB) is a global financial services firm that offers various financial and investment products to individual, corporate, and institutional clients. Deutsche Bank operates in three divisions: Corporate and Investment Bank, which advises corporate and institutional clients on structuring financial transactions and provides debt and equity issuance; Private Clients and Asset Management, which serves retail and institutional clients and high net worth individuals; and Corporate Investments, which manages the firm’s investments, including its alternative assets. Deutsche Bank’s other offerings include life insurance and mortgage products and services.

Business Overview

Founded in 1870, Deutsche Bank AG was established as an international financial services firm aimed at promoting trading between Germany and other markets throughout Europe and the world. Since then, Deutsche Bank has grown into a leading financial services firm, offering a wide range of financial and related products and services. With nearly 78,000 employees and $2.67 trillion in assets, Deutsche Bank is one of the largest financial institutions in the world.[1]

The firm operates in three divisions:

  • Corporate and Investment Bank (CIB) advises institutional clients on how to structure and execute transactions like mergers and acquisitions. CIB also handles the origination, sale, and trading of equities, debt, and other types of securities.[2]
  • Private Clients and Asset Management (PCAM) provides investment advisory and management services to both institutional and retail investors. Deutsche Bank’s private banking division, which serves high-net-worth individuals and families as well as certain small businesses, also operates within the PCAM segment.
  • Corporate Investments (CI) manages Deutsche Bank’s own investments, including alternative assets like private equity and real estate investments; CI also includes a portfolio of industrial holdings, but these are being eliminated. This segment’s performance depends on changes in the values of its holdings, making it more variable and uncontrollable than Deutsche Bank’s other divisions.

Business & Financial Metrics[3]

In 2009, DB generated a net income of €4.95 billion on revenues of €27.95 billion. This represents a turnaround from 2008, when the company incurred a net loss of €3.90 billion on €13.61 billion in revenues.

Trends and Forces

Declining global M&A activity

When economic conditions take a turn for the worse, fewer firms look to buy and sell other companies, leading to lower revenues for Deutsche Bank and other investment banks that structure these types of transactions. The spreading effects of the credit crunch and the slowdown in the U.S. housing market could drive down the frequency of mergers and acquisitions worldwide. Deutsche Bank would be especially hard hit by a global slowdown in M&A activity since its Corporate and Investment Bank division accounts for well over half of the firm’s pretax income.[4]

Competition

As a diversified financial services firm, Deutsche Bank’s operations span both investment banking and retail banking. Since over half of its profits come from investment banking, however, it’s most often compared to other I-banks such as Goldman Sachs Group (GS), Morgan Stanley (MS), and Merrill Lynch (MER). As Deutsche Bank pares down its retail operations to focus on higher-margin investment banking segments, this comparison will continue to become more appropriate.

References

  1. Deutsche Bank Interim Report as of September 30, 2007 - Fact Sheet
  2. Deutsche Bank Interim Report as of September 30, 2007 - Segmental Results of Operations 9M2007
  3. DB 2009 20-F pg. 2  
  4. Deutsche Bank Annual Report 2006 - Results by Segment
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