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Deutsche Bank AG (DE:DBK)
:DBK
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Deutsche Bank AG
(NYSE:DBK)
Rating:74Outperform
Price Target:
€28.00
▲(7.69%Upside)
Positive Factors
Fiscal Policy
Deutsche Bank is expected to benefit significantly from the German government's fiscal expansion.
Profitability
The bank is seeing improvements in its profitability, with many issues that previously affected it being resolved or mitigated.
Negative Factors
Valuation
Deutsche Bank's current valuation is considered low, trading at low multiples, making it an attractive investment opportunity.
Deutsche Bank AG (DBK) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€50.61B
Dividend Yield2.29%
Average Volume (3M)6.45M
Price to Earnings (P/E)11.4
Beta (1Y)1.31
Revenue Growth3.36%
EPS Growth3.08%
CountryDE
Employees89,687
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.99
Shares Outstanding1,948,252,900
10 Day Avg. Volume7,156,501
30 Day Avg. Volume6,448,025
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)0.59
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€25.92Price Target Upside-0.29% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Deutsche Bank AG Business Overview & Revenue Model
Company DescriptionDeutsche Bank AG is a leading global investment bank and financial services company headquartered in Frankfurt, Germany. It operates through four core business segments: Corporate Bank, Investment Bank, Private Bank, and Asset Management. The bank provides a wide range of financial products and services, including investment banking, commercial banking, transaction banking, private banking, and asset management services to corporate, institutional, and individual clients worldwide.
How the Company Makes MoneyDeutsche Bank AG generates revenue through its diverse range of financial services across its core business segments. The Corporate Bank provides services such as cash management, trade finance, and lending, generating fees and interest income. The Investment Bank earns revenue from underwriting, advisory services, trading, and sales of financial products such as equities, fixed income, and foreign exchange. The Private Bank segment offers wealth management and retail banking services, including deposit-taking and lending, which contribute to interest and fee-based income. Lastly, the Asset Management division earns fees from managing investment funds and other client assets. Partnerships with other financial institutions and strategic investments also play a role in enhancing its revenue streams.
Deutsche Bank AG Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 19.22%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance in Q1 2025, with significant revenue growth and improved profitability metrics, buoyed by strategic investments and cost efficiency. However, higher provisions and ongoing geopolitical uncertainties pose challenges. The solid capital position and record asset management inflows indicate confidence in achieving full-year targets despite a few headwinds.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenues of €8.5 billion in Q1 2025, up 10% year-on-year, setting a strong start towards the full-year revenue objective of around €32 billion.
Improved Profitability
Pre-tax profit increased by 39% year-on-year to €2.8 billion, and net profit reached €2 billion with a 11.9% return on tangible equity.
Solid Capital Position
CET1 ratio at 13.8%, supporting client needs and shareholder rewards.
Record Net Inflows in Asset Management
Asset Management reported record net inflows of €20 billion in Q1, with assets under management over €1 trillion.
Cost Efficiency Achievements
Adjusted costs of €5.1 billion in line with full year guidance, with a cost/income ratio of 61%.
Negative Updates
Higher Stage 1 and 2 Provisions
Stage 1 and 2 provisions were elevated at €130 million, with around €70 million related to weaker macroeconomic forecasts and tariff impacts.
Ongoing Geopolitical Uncertainty
The geopolitical landscape remains volatile, impacting economic stability and necessitating cautious forward-looking projections.
Corporate Bank's Slower Start
The Corporate Bank had a weaker start in Q1 with a slight revenue decline due to accounting reclassification effects.
Company Guidance
During the Q1 2025 Analyst Conference Call, Deutsche Bank provided several key metrics regarding their performance and future guidance. They reported revenues of €8.5 billion, marking a 10% increase, and are on track to achieve their full-year revenue target of around €32 billion. The cost/income ratio was at 61%, with adjusted costs aligning with the full-year guidance at €5.1 billion. The bank's pre-tax profit rose by 39% year-on-year to €2.8 billion, while the net profit was €2 billion, yielding a return on tangible equity of 11.9%. Their Common Equity Tier 1 (CET1) ratio stood at 13.8%, positioning them well for the rest of the year. The bank's liquidity metrics were solid, with a liquidity coverage ratio of 134% and a net stable funding ratio of 119%. Additionally, they highlighted a compound annual growth rate of 6.1% in revenue since 2021 and have reached 85% of their €2.5 billion cost efficiency target. Capital distributions for the year were announced at €2.1 billion, including a dividend and a share buyback program, with a commitment to surpass the €8 billion distribution target by 2025. The bank remains committed to a cost/income ratio below 65% and an RoTE above 10% by 2025.Deutsche Bank AG Financial Statement Overview
Summary
Deutsche Bank AG exhibits revenue growth and a high gross profit margin. However, profitability concerns arise from a negative EBIT margin and cash flow challenges, particularly in generating positive free cash flow.Income Statement
Deutsche Bank AG's revenue has shown a consistent growth trajectory, with a 4.06% increase from 2023 to 2024. However, the EBIT margin turned negative in 2024, significantly impacting overall profitability. The net profit margin improved slightly to 11.20% in 2024 from the previous year, but the negative EBIT margin is a critical concern. The bank's gross profit margin remains high, reflecting strong revenue management.70
Positive
Balance Sheet
Deutsche Bank AG maintains a healthy equity base with an equity ratio of 5.61% in 2024. The debt-to-equity ratio stands at 1.95, indicating moderate leverage, typical for the banking industry. Return on Equity (ROE) improved to 4.33% in 2024, showcasing better utilization of equity capital compared to previous years. Overall, the balance sheet displays stability but is pressured by industry-standard leverage.65
Positive
Cash Flow
The cash flow statement highlights a significant decline in operating cash flow, resulting in negative free cash flow in 2024. The operating cash flow to net income ratio is concerning, indicating challenges in converting income into cash. Free cash flow has deteriorated, posing liquidity concerns and potential risks for future investments.55
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 28.26B | 28.88B | 26.66B | 25.30B | 23.89B |
| Gross Profit | 30.05B | 28.88B | 26.66B | 25.30B | 23.89B |
| EBITDA | 8.66B | 7.66B | 7.38B | 5.30B | 2.96B |
| Net Income | 3.37B | 4.27B | 5.53B | 2.37B | 495.00M |
Balance Sheet | |||||
| Total Assets | 1.39T | 1.31T | 1.34T | 1.32T | 1.32T |
| Cash, Cash Equivalents and Short-Term Investments | 187.89B | 213.43B | 217.77B | 222.74B | 231.17B |
| Total Debt | 151.49B | 144.22B | 146.38B | 156.19B | 152.72B |
| Total Liabilities | 1.31T | 1.24T | 1.26T | 1.26T | 1.26T |
| Stockholders Equity | 77.83B | 73.05B | 70.54B | 66.33B | 60.60B |
Cash Flow | |||||
| Free Cash Flow | -29.11B | 5.18B | -2.45B | -3.50B | 30.22B |
| Operating Cash Flow | -28.58B | 3.83B | -2.11B | -2.95B | 30.74B |
| Investing Cash Flow | -6.78B | -2.58B | -17.18B | 23.59B | -1.89B |
| Financing Cash Flow | -646.00M | -1.08B | 614.00M | 1.63B | -311.00M |
Deutsche Bank AG Technical Analysis
Positive
26.00
Price Trends
23.74
Positive
21.90
Positive
18.98
Positive
Market Momentum
0.41
Negative
67.42
Neutral
95.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DBK, the sentiment is Positive. The current price of 26 is above the 20-day moving average (MA) of 24.50, above the 50-day MA of 23.74, and above the 200-day MA of 18.98, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 95.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DBK.
Deutsche Bank AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €28.35B | 14.11 | 17.10% | 2.46% | 7.42% | 15.61% | |
74 Outperform | €50.61B | 11.41 | 6.68% | 2.29% | 3.36% | 3.08% | |
74 Outperform | €32.23B | 11.58 | 9.28% | 2.08% | 17.06% | 25.66% | |
74 Outperform | €50.44B | 26.17 | 19.07% | 1.24% | 14.88% | 13.32% | |
72 Outperform | €32.27B | 14.33 | 19.63% | 3.36% | 9.68% | 18.57% | |
67 Neutral | €71.85B | 12.86 | 18.25% | 3.17% | 6.63% | 26.20% | |
58 Neutral | $12.55B | 5.32 | -2.71% | 5.27% | 5.88% | -56.03% |
* Financial Sector Average
Performance Comparison
DE:DBK
Deutsche Bank AG
26.00
11.01
73.46%
DE:HNR1
Hannover Rueck
267.60
34.23
14.67%
DE:CBK
Commerzbank
27.21
12.98
91.16%
DE:DB1
Deutsche Boerse
277.40
89.61
47.72%
DE:TLX
Talanx AG
109.80
36.68
50.16%
DE:MUV2
Munich Reinsurance
550.00
98.62
21.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.