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Deutsche Bank AG (DE:DBK)
:DBK
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Deutsche Bank AG
(NYSE:DBK)
Rating:70Outperform
Price Target:
€32.00
▲(5.44% Upside)
Positive Factors
Capital Position
The bank's CET1 ratio improved due to earnings and RWA efficiency, providing a solid capital position.
Earnings
Strong results in 2Q25, with net income significantly above expectations, indicate a robust financial performance.
Valuation
Deutsche Bank's current valuation is considered low, trading at low multiples, making it an attractive investment opportunity.
Negative Factors
Cost Efficiency
DBK will likely announce material cost efficiency measures to bring down the C/I ratio to below 60% by 2028.
Investment Banking Risks
The bank is moving past its restructuring challenges, with reduced risks in areas such as investment banking volatility and US commercial real estate exposure.
Regulatory Impact
DBK provided detailed mitigation measures to the material RWAs inflation disclosed within the recent Pillar 3 report.
Deutsche Bank AG (DBK) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€61.13B
Dividend Yield2.24%
Average Volume (3M)5.55M
Price to Earnings (P/E)10.2
Beta (1Y)1.37
Revenue Growth-4.39%
EPS Growth81.95%
CountryDE
Employees89,687
SectorFinancial
Sector Strength72
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.72
Shares Outstanding1,948,252,900
10 Day Avg. Volume4,725,171
30 Day Avg. Volume5,546,464
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.43
Price to Sales (P/S)1.17
P/FCF Ratio-1.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€30.24Price Target Upside-0.35% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Deutsche Bank AG Business Overview & Revenue Model
Company DescriptionDeutsche Bank Aktiengesellschaft provides investment, financial, and related products and services to private individuals, corporate entities, and institutional clients worldwide. Its Corporate Bank segment provides cash management, trade finance and lending, trust and agency, foreign exchange, and securities services, as well as risk management solutions. The company's Investment Bank segment offers merger and acquisitions, and equity advisory services. This segment also focuses on financing, advisory, fixed income, risk management, sales and trading, and currencies. Its Private Bank segment provides payment and account services, and credit and deposit products, as well as investment advice, such as environmental, social, and governance products. This segment also provides wealth management, postal and parcel services, and digital offerings. The company's Asset Management segment provides investment solutions, such as alternative investments, which include real estate, infrastructure, private equity, liquid real assets, and sustainable investments; passive investments; and various services, including insurance and pension solutions, asset liability management, portfolio management solutions, asset allocation advisory, structuring, and overlay to institutions, governments, corporations and foundations, and individual investors. As of December 31, 2021, it operated 1,709 branches in 58 countries. The company was founded in 1870 and is headquartered in Frankfurt am Main, Germany.
How the Company Makes MoneyDeutsche Bank generates revenue through multiple key streams. Primarily, it earns income from its Investment Banking division, which includes advisory fees from mergers and acquisitions, underwriting fees from capital market activities, and trading revenues from sales and trading operations across equities, fixed income, and commodities. The Corporate Banking segment contributes through lending activities, transaction banking services, and cash management solutions for corporate clients. Additionally, the Asset Management and Private Banking divisions provide investment products and wealth management services, generating management fees and performance fees. Significant partnerships with corporations, institutional investors, and financial markets enhance its service offerings and client base, contributing further to its earnings. Overall, Deutsche Bank's diversified revenue model enables it to navigate various market conditions effectively.
Deutsche Bank AG Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook with strong revenue growth and cost efficiency achievements, but challenges remain in the Corporate Bank and commercial real estate provisions. The FX impact is also a concern.Q2-2025 Updates
Positive Updates
Resilient Revenue Growth
Deutsche Bank reported a 6% increase in revenues to EUR 16.3 billion in the first half of 2025, aligning with the full-year target of EUR 32 billion.
Cost Efficiency Achievements
Noninterest expenses declined by 15% year-on-year to EUR 10.2 billion, contributing to a cost/income ratio of 62%.
Strong Return on Tangible Equity
The bank delivered a return on tangible equity of 11% in the first half of the year, meeting its target of greater than 10%.
Strong CET1 Ratio
The CET1 ratio is at 14.2%, allowing for capital deployment to grow the business and increase shareholder returns.
Positive Progress in Asset Management
Assets under management exceeded EUR 1 trillion, with DWS receiving approval for Germany's first regulated euro-denominated stablecoin.
Negative Updates
Challenges in the Corporate Bank
The Corporate Bank faced headwinds with slight revenue pressure due to FX movements and a weaker U.S. dollar, impacting net interest income.
Elevated CRE Provisions
Commercial real estate provisions have been higher than expected, with year-to-date provisions at EUR 430 million.
FX Impact on Revenues
The weaker U.S. dollar has created a headwind of approximately EUR 400 million for the full year revenue.
Company Guidance
During the Q2 2025 analyst conference call, Deutsche Bank highlighted several key financial metrics that underscore its resilient performance and strategic progress. The bank reported a 6% increase in revenues to EUR 16.3 billion for the first half of 2025, aligning with a full-year target of approximately EUR 32 billion. Noninterest expenses decreased by 15% year-on-year to EUR 10.2 billion, contributing to a cost/income ratio of 62%. The return on tangible equity for the first half stood at 11%, surpassing the target of over 10%. The Common Equity Tier 1 (CET1) ratio was reported at 14.2%, supporting business growth and shareholder returns. Pre-provision profit doubled from the previous year to EUR 6.2 billion, with adjusted pre-provision profit up 29% year-on-year. The bank's diversified revenue streams, with 74% from stable sources, and its focus on operational efficiency and strategic investments, point to a strong position for continued growth and shareholder value generation beyond 2025.Deutsche Bank AG Financial Statement Overview
Summary
Deutsche Bank AG's financial performance is mixed. While revenue growth is strong, profitability is challenged by a negative EBIT margin. The balance sheet is stable with moderate leverage typical for banks. However, cash flow issues pose liquidity management challenges.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.63B | 28.26B | 28.88B | 26.66B | 25.30B | 23.89B |
| Gross Profit | 38.51B | 28.22B | 28.88B | 26.66B | 25.30B | 23.89B |
| EBITDA | 16.86B | 8.66B | 7.66B | 7.38B | 5.30B | 2.96B |
| Net Income | 3.59B | 3.37B | 4.27B | 5.53B | 2.37B | 495.00M |
Balance Sheet | ||||||
| Total Assets | 1.42T | 1.39T | 1.31T | 1.34T | 1.32T | 1.32T |
| Cash, Cash Equivalents and Short-Term Investments | 201.35B | 187.89B | 213.43B | 217.77B | 222.74B | 231.17B |
| Total Debt | 131.47B | 151.49B | 144.22B | 146.38B | 156.19B | 152.72B |
| Total Liabilities | 1.34T | 1.31T | 1.24T | 1.26T | 1.26T | 1.26T |
| Stockholders Equity | 80.00B | 77.83B | 73.05B | 70.54B | 66.33B | 60.60B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -29.11B | 5.18B | -2.45B | -3.50B | 30.22B |
| Operating Cash Flow | 0.00 | -28.58B | 3.83B | -2.11B | -2.95B | 30.74B |
| Investing Cash Flow | 0.00 | -6.78B | -2.58B | -17.18B | 23.59B | -1.89B |
| Financing Cash Flow | 0.00 | -646.00M | -1.08B | 614.00M | 1.63B | -311.00M |
Deutsche Bank AG Technical Analysis
Neutral
30.35
Price Trends
27.73
Positive
25.31
Positive
21.76
Positive
Market Momentum
1.04
Positive
54.42
Neutral
42.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DBK, the sentiment is Neutral. The current price of 30.35 is below the 20-day moving average (MA) of 30.66, above the 50-day MA of 27.73, and above the 200-day MA of 21.76, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DBK.
Deutsche Bank AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €61.13B | 10.25 | 9.19% | 2.24% | -4.39% | 81.95% | |
68 Neutral | $17.82B | 11.90 | 10.30% | 3.72% | 9.69% | 0.80% | |
| ― | €38.74B | 15.82 | 9.11% | ― | ― | ― | |
| ― | €46.64B | 23.81 | 19.61% | ― | ― | ― | |
| ― | €30.14B | 12.28 | 22.81% | ― | ― | ― | |
| ― | €71.25B | 14.23 | 16.65% | 5.29% | ― | ― | |
| ― | €30.78B | 13.73 | 19.75% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
DE:DBK
Deutsche Bank AG
30.35
16.08
112.70%
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Commerzbank
33.23
20.29
156.80%
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255.68
56.68
28.48%
GB:0M9A
Hannover Rueck
250.48
3.02
1.22%
GB:0KFE
Munich Reinsurance
547.61
72.47
15.25%
GB:0QA8
Talanx AG
118.50
43.13
57.22%
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.