QUOTE AND NEWS
MarketWatch  2 hrs ago  Comment 
Deutsche Bank desperately needs to shore up its thin capital margins, and that likely means more pain for shareholders.
guardian.co.uk  2 hrs ago  Comment 
John Cryan, the Deutsche chief executive, has insisted it doesn’t need government help – but the markets want answers The markets are fixated on the possible options for Deutsche Bank as it faces the prospect of a $14bn (£10.5bn) penalty...
guardian.co.uk  3 hrs ago  Comment 
Berlin and the regulator know that troubles at the lender go much deeper than a row with the Americans over mis-selling Tidjane Thiam, the former Prudential chief now running Credit Suisse, won’t be thanked by his counterparts at Deutsche Bank...
MarketWatch  11 hrs ago  Comment 
Deutsche Bank’s troubles have weighed on markets worldwide this week, but one prominent banker says it’s not the financial crisis all over again.
Clusterstock  Sep 28  Comment 
Deutsche Bank sent a memo, seen by Business Insider, to staff reassuring them of the bank's financial position and coaching them on what to tell clients who ask about the company's bombed-out share price. Deutsche Bank shares crashed to a...
guardian.co.uk  Sep 28  Comment 
Germany’s biggest lender insists it doesn’t need fresh capital, amid rumours of a rescue plan Draghi defends ECB policies to German MPs Die Zeit: Berlin working on rescue plan CEO John Cryan: I never asked Merkel for help Deutsche Bank...
guardian.co.uk  Sep 27  Comment 
Bank denies it has asked for help from German chancellor Angela Merkel over potential $14bn US Department of Justice penalty Deutsche Bank has endured another turbulent day on the stock market amid questions about its ability to pay a penalty to...
Reuters  Sep 26  Comment 
Wall Street fell on Monday as Deutsche Bank weighed on financials and investors hunkered down for the first debate between U.S. presidential candidates Hillary Clinton and Donald Trump.
New York Times  Sep 26  Comment 
The lender said that it did not seek the intervention of the German government in a dispute over underwriting of residential mortgage-backed securities.
MarketWatch  Sep 26  Comment 
U.S. stocks extend losses Monday as fears over the fate of Germany’s Deutsche Bank weighed on the financial sector while the upcoming U.S. presidential debate also contributed to jittery sentiment.




 
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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