QUOTE AND NEWS
Benzinga  8 hrs ago  Comment 
On Monday, Deutsche Bank analyst Vin Chao published a research note on QTS Realty Trust Inc (NYSE: QTS) reinstating the data center REIT as a Buy prior to the company's 2Q15 earnings release. In May 2015, QTS Realty announced its acquisition of...
Benzinga  Jul 29  Comment 
In a report published Wednesday, Deutsche Bank analyst Amit Mehrotra upgraded the rating on Scorpio Bulkers, Inc. (NYSE: SALT) from Hold to Buy, while raising the price target from $2 to $3. The analyst believes that there were several potential...
Clusterstock  Jul 28  Comment 
China's stock markets look like they could be heading for free fall again, after collapsing around 30% in just four weeks starting in mid-June. That collapse was compared to the Wall Street Crash of 1929, with Bloomberg pointing out the...
The Hindu Business Line  Jul 25  Comment 
Indian-origin banker Anshu Jain, Deutsche Bank’s former co-chief, has got a clean chit from the German financial watchdog BaFin, on charges of allegedly lying to the regulators about the interbank...
TechCrunch  Jul 24  Comment 
 Vizio Inc., maker of cheap TV sets and other electronics, filed a prospectus Friday with U.S. regulators to raise up to $172.5 million in an initial public offering of Class A common stock. BofA Merrill Lynch, Deutsche Bank Securities and...
Financial Times  Jul 24  Comment 
BaFin drops part of probe into former Deutsche Bank co-chief
Benzinga  Jul 24  Comment 
In a report published Friday, Deutsche Bank analyst Michael Linenberg upgraded the rating on United Continental Holdings, Inc. (NYSE: UAL) to Buy, while raising the price target from $63 to $72. The analyst believes that the outlook for the...
newratings.com  Jul 23  Comment 
LONDON (dpa-AFX) - Royal Bank of Scotland Group plc (RBS, RBS.L) agreed Thursday to dispose of a portfolio of loans to an entity funded by German lender Deutsche Bank AG (DB) and funds affiliated with Apollo Global Management, LLC. The deal is...
Benzinga  Jul 22  Comment 
In a report issued Wednesday, Deutsche Bank analysts Robyn Karnauskas, Mohit Bansal and Evan Seigerman maintained a Buy rating and $460.00 price target on shares of Biogen Inc (NASDAQ: BIIB), following the results for its Phase 1 Alzheimer'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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