QUOTE AND NEWS
Benzinga  3 hrs ago  Comment 
Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported its 1Q16 sales and EPS short of expectations. Deutsche Bank’s Mike Baker maintained a Hold rating for the company, while reducing the price target from $45 to $42. Bed Bath & Beyond’s comps...
The Economic Times  10 hrs ago  Comment 
Benzinga  Jun 22  Comment 
Deutsche Bank analysts Nandan Amladi and Sameer Kalucha saw Adobe Systems Incorporated (NASDAQ: ADBE) continued momentum in its creative cloud. The brokerage reiterated its rating of Buy with a price target of $120 on the company's shares. The...
Clusterstock  Jun 22  Comment 
FRANKFURT (Reuters) - Deutsche Bank has struck a deal with its German works council over closing about a quarter of branches in its home market, several people familiar with the matter said. Germany's flagship lender has embarked on a deep...
MarketWatch  Jun 21  Comment 
Torsten Slok, Deutsche Bank’s chief international economist, argues that the Fed is already employing measures similar to helicopter money via its remittances to the Treasury.
Clusterstock  Jun 21  Comment 
Deutsche Bank is reshuffling its wealth-management team in the UK, promoting the head of compliance to run the day-to-day operations of the department. Lindsay Nicholls-Smith, who now oversees wealth management in the UK and southern Europe, is...
Clusterstock  Jun 21  Comment 
If Britain votes to leave the European Union on Thursday, it is widely acknowledged that the pound will dive off a cliff, with estimates of the fall ranging from around 5% to as much as 20% in the immediate aftermath. It has also been largely...
Benzinga  Jun 20  Comment 
Deutsche Bank analyst Ross Seymore issued a note on shares of NXP Semiconductors NV (NASDAQ: NXPI). Monday's note followed recent investor meetings with company CFO Dan Durn and VP of Investor Relations Jeff Palmer. Seymore highlighted four...
Benzinga  Jun 20  Comment 
Although challenges remain for Yelp Inc (NYSE: YELP) beyond 2016, Deutsche Bank’s Lloyd Walmsley prefers to remain long on the stock due to expectations of upside in 2016 and enhanced long term optionality, driven by increased confidence in the...
Benzinga  Jun 16  Comment 
Urstadt Biddle Properties Inc (NYSE: UBA) reported a an earnings beat last week, which prompted Deutche Bank to lift its price target by $1 to $24. "A&P largely behind them and continuing to make progress on other fronts," the note said. "2Q16...
Benzinga  Jun 16  Comment 
Deutsche Bank cut the price target on Baidu Inc (ADR) (NASDAQ: BIDU), but said the longer-term impairment to the search business is likely "to be very limited." The Chinese search engine cut its second-quarter revenue guidance to a range of...




 
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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