QUOTE AND NEWS
The Economic Times  4 hrs ago  Comment 
Deutsche Bank today said there are a plenty of challenges in terms of maintaining the fiscal deficit at the targetted 3.9 per cent of GDP.
Benzinga  5 hrs ago  Comment 
Shares of Deutsche Bank AG (USA) (NYSE: DB) were among the worst performers in the financial sector on Monday morning. Shares of the German-based bank were trading lower by around 4.5 percent at $30.10 shortly after the opening...
Benzinga  Jul 5  Comment 
CNBC Fast Money's Tim Seymour said in the segment of the show called "Final Trade" that he would buy Facebook Inc (NASDAQ: FB) on Monday. David Seaburg is a buyer of Zayo Group Holdings Inc (NYSE: ZAYO). Brian Kelly wants to take a short...
Financial Times  Jul 5  Comment 
Hedge funds file subpoena in New York requesting information over German bank’s role in auction
newratings.com  Jul 3  Comment 
Deutsche Bank AG: Release according to Article 26, Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution Deutsche Bank AG 03.07.2015 14:38 Dissemination of a Voting Rights Announcement,...
Benzinga  Jul 1  Comment 
In a report published Tuesday, Deutsche Bank analyst Vishal Shah commented on the solar sector, noting that current weakness provides an "attractive" entry point for long-term investors. "We continue to view YieldCos as a significant growth...
Benzinga  Jul 1  Comment 
The Prime Minister's Office in Athens on Tuesday sent a two-page letter to the heads of the European Commission, European Central Bank and International Monetary Fund. Various media reports, including the Financial Times noted that the letter...
Reuters  Jul 1  Comment 
Deutsche Bank's new Chief Executive John Cryan delayed implementing a strategic overhaul by three months but told staff to expect tough reforms as he shakes up a group that he said had become too diversified and complex.
Financial Times  Jun 30  Comment 
Investors say the incoming chief executive will need to instigate a management clear-out to restore trust
Benzinga  Jun 30  Comment 
A new report by Deutsche Bank analyst Yaron Kinar looks at the potential for M&A deals in the life insurance industry. Despite recent consolidation in the managed care and property and casualty (P&C) space, Kinar believes that the current...




 
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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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