QUOTE AND NEWS
Benzinga  1 hr ago  Comment 
Shares of Euronav NV (NYSE: EURN) have traded lower with the entire Bulk Shipping group Tuesday. The stock was down about 4.5 percent to $8.91 heading into the last hour of trade. Deutsche Bank analyst Amit Mehrotra earlier published a note on...
Benzinga  7 hrs ago  Comment 
Deutsche Bank remains "cautious" on ConAgra Foods Inc (NYSE: CAG)'s margin expansion strategies, especially "around the long-term ability of some of the company's brands to shift away from a value positioning." Strategies The company's CEO...
The Economic Times  Jul 4  Comment 
The stock beneficiaries from the government’s thrust are NTPC, UltraTech, Shree Cement, Ashok Leyland and M&M, among others.
Clusterstock  Jul 2  Comment 
FRANKFURT (Reuters) - Deutsche Bank will not need a capital increase for the foreseeable future, its chief executive told German magazine Spiegel in an interview. "I believe we can build up our capital organically, which we unfortunately didn't...
Financial Times  Jun 30  Comment 
Report says German lender ‘appears to be the most important net contributor to systemic risks’
Forbes  Jun 30  Comment 
Less than a week after British voters decided to leave the European Union, the International Monetary Fund issued a report Wednesday stating that Germany’s largest bank may also be the largest contributor to systemic risks among the largest...
Clusterstock  Jun 30  Comment 
FRANKFURT (Reuters) - Deutsche Bank's links to the world's largest lenders make it a bigger potential risk to the wider financial system than any other global bank, the International Monetary Fund (IMF) said on Thursday. The IMF compared...
Wall Street Journal  Jun 30  Comment 
Deutsche Bank shares tumbled to more than a 30-year low after the International Monetary Fund and the Federal Reserve delivered the lender a double whammy, saying it posed a significant risk to financial stability.
Clusterstock  Jun 30  Comment 
Deutsche Bank shares opened 4% lower in Germany on Thursday after the bank failed the US Federal Reserve's Dodd-Frank stress test. The test measures the ability to respond to an event similar to the financial crisis, and examines 33 financial...




 
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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