QUOTE AND NEWS
Benzinga  Sep 13  Comment 
Activist investor Starboard Value wrote a letter on Monday to Perrigo Company plc Ordinary Shares (NYSE: PRGO), in which it implored the company to take steps to boost shareholder value as its stock is "deeply undervalued." Starboard's words...
Clusterstock  Sep 13  Comment 
The CEO of Deutsche Bank, John Cryan, sent a memo to employees, telling them to "be more daring" and make decisions without waiting for their bosses to tell them what to do. According to a memo seen by Business Insider, he said employees...
Yahoo  Sep 12  Comment 
The death of volatility has been greatly exaggerated.
Yahoo  Sep 9  Comment 
Deutsche Bank (DBKGn.DE) is expected to receive a demand for more than $2.4 billion from U.S. authorities in settlement of an investigation into past misspelling of mortgage-backed securities, a German monthly magazine reported. The U.S....
Benzinga  Sep 8  Comment 
Wall Street’s reputation for bending the rules always leads to raised eyebrows in the trading community when a firm times a call on a stock a little too well. Apparently, Deutsche Bank had one of these spectacularly well-timed calls on...
Benzinga  Sep 8  Comment 
Deutsche Bank is cautious on the machinery sector in the United States. Analysts Nicole DeBlase and Saree Boroditsky don't see any recovery in sight in the natural resources segment, although they think the sector has bottomed. However, the...
Automotive World  Sep 7  Comment 
Commercial Vehicle Group, Inc. (the “Company”) (Nasdaq: CVGI) a leading supplier of fully-integrated system solutions for the global commercial vehicle market, today announced thatPatrick Miller, President and CEO, and Tim Trenary, Chief...
Benzinga  Sep 7  Comment 
While Oshkosh Corp (NYSE: OSK) has outperformed its peers by 18 percentage points year-to-date driven by positive defense news, the stock trades in line with the peer group, despite the company’s superior growth profile. Deutsche Bank’s...




 
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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