QUOTE AND NEWS
New York Times  3 hrs ago  Comment 
The report from the German regulator raises questions about allegations of manipulating of interest rates and pressure on the bank as it shook up management.
Wall Street Journal  Jul 16  Comment 
German regulators accused a half-dozen current Deutsche Bank executives of failing to stop or tell regulators about years of attempted market manipulation, according to a confidential report.
Benzinga  Jul 16  Comment 
In a report published Thursday, Deutsche Bank analyst Gregg Gilbert maintained a Buy rating on Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA), with a price target of $73. Teva and its partner Active Biotech AB (OTCMKTS: ATVBF) have...
Benzinga  Jul 15  Comment 
In a report published Wednesday, Deutsche Bank analyst Ross Sandler and his team looked into Twitter Inc (NYSE: TWTR). Although they expect further implosion, they “see signs of life.” The firm reiterated a Buy rating and $60.00 price...
Benzinga  Jul 15  Comment 
In a report issued Wednesday, Deutsche Bank analyst Ross Sandler and his team looked at Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) ahead of Thursday’s earnings report. Will this is finally the moment bulls have been waiting for or not. The...
Financial Times  Jul 15  Comment 
UK watchdog examining whether lender breached anti-money laundering laws for its Russian clients
Benzinga  Jul 15  Comment 
In a report published Wednesday, Deutsche Bank analyst Bill Schmitz Jr initiated coverage of Energizer Holdings Inc. (NYSE: ENR) with a Buy rating and a price target of $45. Analyst Bill Schmitz Jr pointed out that Energizer was a part of the...
Reuters  Jul 15  Comment 
* Deutsche Bank, Goldman Sachs, Berenberg to lead IPO - sources
Market Intelligence Center  Jul 15  Comment 
For a hedged play on Deutsche Bank AG (DB) MarketIntelligenceCenter.com’s patented trade-picking algorithms selected a Oct. '15 $32.00 covered call for a net debit in the $30.45 area. That is also the break-even stock price for the covered call....
MarketWatch  Jul 14  Comment 
Deutsche Bank facing investigation for Moscow bribery; SEC/PCAOB veteran warns audit partner disclosure means more work/cost; Report released on joint investigation of Treasury bond volatility; House hearing ahead on Fed leak investigation; and EU...




 
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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