QUOTE AND NEWS
Clusterstock  4 hrs ago  Comment 
One of Deutsche Bank's top sales executives is leaving. Jonny Potter, who had been global head of equity sales, is on his way out at the bank, according to people familiar with the situation. He was named to his current role in late 2015,...
Clusterstock  Jan 16  Comment 
Seven major banks have signed up to a new project aimed at increasing global trade among small and medium-sized businesses using blockchain, or distributed ledger, technology. Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Société Générale and...
Reuters  Jan 13  Comment 
Deutsche Bank plans to put its home German market and corporate customers at the center of its plans when it spells out more of its future strategy over the next few months, the lender's finance chief said on Friday.
New York Times  Jan 10  Comment 
Masayoshi Son has pledged to create jobs, but a small group of former Deutsche Bank executives are looking beyond just tech start-ups for investing the mammoth fund.
newratings.com  Jan 10  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 DGAP Voting Rights Announcement: Deutsche Bank AG Deutsche Bank AG: Release according to...
Yahoo  Jan 10  Comment 
Deutsche Bank's (DBKGn.DE) top economist said U.S. President-elect Donald Trump will be an improvement on "a mediocre status quo" and drive economic growth in the country higher. "We will see a move from dogma to pragmatism," David Folkerts-Landau...
The Hindu Business Line  Jan 10  Comment 
Indian equity markets are expected to move in a narrow range during the year and the benchmark Sensex is likely to touch 29,000 by the end of 2017.According to Deutsche Bank’s India Equity Strategy R...
Financial Times  Jan 10  Comment 
German lender is using Twitter and Facebook to find promising graduates




 
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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