Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Deutsche Bank AG    DBK   DE0005140008

DEUTSCHE BANK AG

(DBK)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Deutsche Bank : Investors renew calls for Deutsche Bank to trim investment bank

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/16/2019 | 12:43pm EDT
FILE PHOTO: Christian Sewing, CEO of Deutsche Bank AG, addresses the media during the bank's annual news conference in Frankfurt

FRANKFURT (Reuters) - Deutsche Bank investors are renewing calls for it to scale back its investment bank division ahead of what promises to be a challenging annual shareholder meeting next week.

The future of Deutsche Bank's investment banking operations has returned to the fore after the collapse of merger talks with smaller rival Commerzbank.

One major investor is trying to extract a pledge from the bank for cuts to the unit before committing to back management in a symbolic vote of confidence at the meeting, a person with knowledge of the matter said on condition of anonymity.

Another prominent investor, Union Investment, said changes in strategy were long overdue.

"Without cuts in investment banking, we believe it will not be possible to achieve targets on returns," said portfolio manager Alexandra Annecke, who is due to address the meeting.

Deutsche Bank declined to comment.

The division generates about half of Deutsche Bank's revenue but is also considered its Achilles heel, with European regulators fearful that it will fail the next round of stress tests in the United States.

Last week, the risk of a rebuke from shareholders at the annual meeting grew after two influential investor advisory groups - Institutional Shareholder Services and Glass Lewis - urged them to issue a vote of no confidence in Deutsche Bank's management.

QUELLING CONCERNS

Deutsche Bank's shares have dropped 34% since shareholders convened a year ago. On Thursday, the price was just cents above the record low of 6.68 euros set in December.

The bank's chairman, Paul Achleitner, and top executives are speaking to investors to quell concerns of large shareholders, a common practice in the run-up to the annual meeting on May 23, said another person familiar with the matter.

But the bank is unlikely to announce any changes to its investment banking operations in the coming days, executives said.

Revenue at the division is forecast to fall to 12.5 billion euros ($14.0 billion) this year, according to a consensus of analysts. That would mark a fourth consecutive year of decline, down 34% from 2015, based on Reuters calculations.

That contrasts with a projected 6% rise in JP Morgan's investment banking revenue to $36 billion for the same period. It far outpaces a 5% drop in investment banking revenue across the industry from 2015 to 2018, according to Coalition, which tracks banking industry performance.

Deutsche Bank and Commerzbank attributed the collapse of merger talks to the risks of doing a deal, restructuring costs and capital demands, but concerns about the investment bank loomed large, people with knowledge of the matter said.

The ratings agencies Moody's and Fitch, which have both tagged Deutsche for a possible credit-rating downgrade, have cited troubles at the investment bank as key concerns.

Citigroup analysts said in a report this week that Deutsche had only one option: a restructuring of its investment bank.

This could mean exiting the United States, where it employs 9,000 people, and dropping out of the equities business, they said, adding that an exit would be costly and weigh on earnings.

Chief Executive Officer Christian Sewing told analysts last month that it was "non-negotiable" that the bank remain "globally relevant", including in the U.S. and Asia.

Sewing announced plans to cut more 7,000 jobs soon after assuming office in a management reshuffle last year, including a 25% cut in equities sales and trading jobs.

(Story corrects date of AGM in 10th paragraph to May 23, not May 24)

(Editing by Deepa Babington)

By Andreas Framke, Hans Seidenstuecker and Tom Sims

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DEUTSCHE BANK AG
12:46pDEUTSCHE BANK : buys 4.9% stake in open banking fintech Deposit Solutions
AQ
09:18aDEUTSCHE BANK : appoints executive body to steer domestic retail business
RE
07:37aDEUTSCHE BANK : Invests in German Fintech Valued at More Than EUR1 Billion
DJ
02:21aEXCLUSIVE : Deutsche Bank has discussed adding assets to bad bank if sales go we..
RE
09/18DEUTSCHE BANK : Decreases Prime Lending Rate to 5.00%
BU
09/18“NO MORE TREES SHOULD FALL THA : ESG yesterday, today, tomorrow
PU
09/18DEUTSCHE BANK : S&P downgrades outlook for some German banks amid risks for indu..
RE
09/18DEUTSCHE BANK : ECB weighs investigating Deutsche Bank over alleged unauthorised..
RE
09/18DEUTSCHE BANK : DB Research launches new insights for corporate clients
PU
09/18Akelius offers D-shares
AQ
More news
Financials (EUR)
Sales 2019 23 674 M
EBIT 2019 -1 665 M
Net income 2019 -5 317 M
Finance 2019 10 342 M
Yield 2019 -
P/E ratio 2019 -3,07x
P/E ratio 2020 43,7x
EV / Sales2019 0,21x
EV / Sales2020 -0,30x
Capitalization 15 204 M
Chart DEUTSCHE BANK AG
Duration : Period :
Deutsche Bank AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DEUTSCHE BANK AG
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 27
Average target price 6,55  €
Last Close Price 7,34  €
Spread / Highest target 22,7%
Spread / Average Target -10,7%
Spread / Lowest Target -45,5%
EPS Revisions
Managers
NameTitle
Christian Sewing Chief Executive Officer
Karl von Rohr Co-President & Chief Administrative Officer
Garth Ritchie Co-President & Co-Head-Corporate & Investment Bank
Paul Achleitner Chairman-Supervisory Board
Frank Kuhnke Chief Operating Officer & Member-Management Board
Sector and Competitors
1st jan.Capitalization (M$)
DEUTSCHE BANK AG5.68%16 482
JP MORGAN CHASE & COMPANY21.46%382 874
BANK OF AMERICA21.75%279 249
INDUSTRIAL AND COMMERCIAL BANK OF CHINA4.16%267 799
WELLS FARGO & COMPANY6.18%215 591
CHINA CONSTRUCTION BANK CORPORATION10.52%193 768