QUOTE AND NEWS
New York Times  11 hrs ago  Comment 
Although revenue rose 24 percent in the quarter, profit fell because of the 1.5 billion euros the bank set aside to cover a settlement with regulators.
The Australian  11 hrs ago  Comment 
Deutsche Bank has poured cold water over suggestions by some investors that the sector is ripe for a correction.
newratings.com  Apr 25  Comment 
FRANKFURT (dpa-AFX) - Germany's biggest lender Deutsche Bank (DB) announced its decisions upon the next phase of its strategy, including plan to reduce leverage in Corporate Banking & Securities, deconsolidate Postbank, invest in its...
Forbes  Apr 25  Comment 
Deutsche Bank has been issued with the largest fine of any bank for rigging international bank offer rates – what the UK’s Financial Conduct Authority (FCA) calls “IBORs”. There are several of these rates: the best-known is Libor –...
Wall Street Journal  Apr 24  Comment 
Deutsche Bank said it will hive off its mass retail unit Postbank and slash assets at its investment bank as it seeks to boost its profitability and share price.
New York Times  Apr 24  Comment 
The decision marks a retreat from the bank’s ambition to serve residents of small towns in Germany as well as hedge funds on Wall Street.
Benzinga  Apr 24  Comment 
Deutsche Bank previewed the Apple Inc. (NASDAQ: AAPL) Q2 results Thursday. The firm maintained a Hold rating and raised its price target from $110 to $125. Overall Quarter Perspective Analysts Sherri Scribner and Larry Zhong expected another...
Financial Times  Apr 24  Comment 
White House confirms a US drone strike has killed two western hostages
guardian.co.uk  Apr 23  Comment 
We should look beyond the size of the fines and ask why senior managers knew nothing at a bank where a deceitful trading culture was ingrained What mild-mannered manipulators they were at Deutsche Bank. Most traders lobbied for dodgy interest...




 
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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