MarketWatch  Oct 2  Comment 
NovoCure Ltd. has priced its initial public offering at $22 a share, below a revised price range of $23 to $24, to raise $165 million. The oncology-focused biotech had initially set a price range of $26 to $29. The company sold 7.5 million shares...
MarketWatch  Oct 1  Comment 
It was an ugly third quarter. Here’s Deutsche Bank’s breakdown of the performance of every major asset class.
Benzinga  Oct 1  Comment 
Financial tech firm R3 has created an initiative under which some of the world's largest banks will explore the use of blockchain in the financial sector. The effort represents the first time major banks have joined forces to research how...
The Economic Times  Oct 1  Comment 
"It is likely to come to pass that India logs 5-6% growth and the rest of the EM a mere 2%. It that case, everyone will flock to India to looking for returns."
Mondo Visione  Sep 30  Comment 
The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Deutsche Bank AG, a global banking and financial services company and provisionally registered Swap Dealer, for failing...
The Australian  Sep 30  Comment 
Deutsche Bank was last night seeking to buy up close to 10 per cent of copper miner OZ Minerals on behalf of an investor.
Benzinga  Sep 28  Comment 
Despite recent price weakness, Deutsche Bank maintains its long-term bullish outlook for offshore drillers. The recovery in demand will likely not occur before 2017. The turnaround will likely require major restructuring from many drillers. In...
Wall Street Journal  Sep 25  Comment 
Boaz Weinstein, the onetime Deutsche Bank trading star who now runs Saba Capital, was accused in a lawsuit Friday of cheating one of his biggest investors earlier this year when they asked for their money back.


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]


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.


  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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