QUOTE AND NEWS
Clusterstock  4 hrs ago  Comment 
China released some ugly economic data this week. GDP expanded 7% year-on-year, below the 7.3% pace of Q4 2014 and in line with expectations. On a quarter-on-quarter basis, this was even weaker, rising 1.3% versus expectations for an increase...
Reuters  Apr 16  Comment 
Halliburton Co has hired Bank of America Corp and Deutsche Bank AG to assist in the sale of two businesses that could be valued at as much as $5 billion collectively, according to people...
The Economic Times  Apr 16  Comment 
Praising the leadership qualities of ICICI Bank chief Chanda Kochhar, her friend and Deutsche Bank co-CEO Anshu Jain has said he is yet to find anything she can't do.
MarketWatch  Apr 15  Comment 
If you’re looking for a new iPhone, don’t buy it in Brazil, and if you’re looking for Marlboros on the cheap, look no further than Moscow, or even Jakarta, according to a Deutsche Bank global prices survey.
Mondo Visione  Apr 15  Comment 
The Dubai Financial Services Authority ("DFSA"), announced today, that it has fined the DIFC branch of Deutsche Bank AG ("DBDIFC"), USD $8,400,000 (AED 30,849,000) for serious contraventions. Those contraventions include misleading the DFSA,...
Benzinga  Apr 15  Comment 
In a report published Wednesday, Deutsche Bank analysts initiated coverage of Starz (NASDAQ: STRZA) with a Buy rating and a price target of $48. Starz is an improving story that lacks many of the more concerning attributes of other media...
Financial Times  Apr 15  Comment 
German group hit for ‘serious contraventions’ of wealth management rules
Clusterstock  Apr 14  Comment 
Vice is more expensive in some cities than others. Deutsche Bank circulated a research note illustrating how the cost of living varies across some of the world's biggest and most popular cities. One of their sources was Expatistan, a site that...
Benzinga  Apr 14  Comment 
J C Penney Co Inc (NYSE: JCP) may still fall short of expectations despite same-store sales growth of 6 percent in the quarter to date, an analyst said Tuesday. The company said it inadvertently disclosed the sales figure Monday in an e-mail to...
Clusterstock  Apr 14  Comment 
The Economist's "Big Mac Index" is a well-known measure of something called purchasing power parity. Basically, it's a measure of how far a dollar will go in any given country.  Ideally, it tells you which currencies are undervalued and...




 
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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