German Stocks: Deutsche Bank Declines as Buybacks Stall
Global Markets

German Stocks: Deutsche Bank Declines as Buybacks Stall

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Shares of the Germany-based Deutsche Bank are trading down after it reported its first-half results for 2024 and abandoned plans for additional buybacks in 2024.

Dax 40-listed Deutsche Bank AG’s (DE:DBK) shares declined by 5.5% as of writing after the bank announced its first-half results and stated that it has stalled its buyback programme for 2024. Nonetheless, the bank assured its shareholders that it remains committed to distributing €8 billion through dividends and buybacks between 2021 and 2025.

CEO Christian Sewing said that the bank aims to deliver two robust quarterly results (including Q2, according to the CEO), before initiating another share buyback.

Snapshot of Deutsche Bank’s Q2 Results

For the second quarter, Deutsche Bank reported a pre-tax profit of €411 million, down from €1.4 billion in the same period a year ago. As announced previously, the bank took a litigation charge of €1.3 billion related to its Postbank takeover. As a result, it posted a net loss attributable to shareholders of €143 million, marking its first quarterly loss in nearly four years.

During the quarter, the bank also raised its provision for credit losses by 20% year-over-year to €476 million.

In terms of its operational performance, Deutsche Bank reported a modest revenue growth of 2% year-over-year to €7.6 billion. Among its segments, the Investment Banking division saw a 10% year-on-year increase in revenue to €2.6 billion. However, revenue of the Fixed Income and Currencies division declined by 3% to €2.3 billion, while Corporate Banking revenue remained nearly flat at €1.9 billion.

Meanwhile, the CET 1 capital ratio, a key measure of a bank’s financial strength, edged up to 13.5% in Q2 from 13.4% in the previous quarter.

What is the Price Prediction for Deutsche Bank?

According to TipRanks’ analyst consensus, DBK stock has a Moderate Buy rating. The stock has a total of 13 recommendations, of which eight are Buy. The Deutsche Bank share price prediction is €16.84 which is 14% higher than the current price level.

See more DBK analyst ratings.

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