Deutsche Bank AG (DBK) AI Stock Analysis

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Deutsche Bank AG

(XETRA:DBK)

Rating:70Outperform

Price Target:

€32.00

▲(4.71% Upside)

Deutsche Bank AG's stock is rated at 70, reflecting a balance of strong revenue growth and cost control against challenges in profitability and liquidity. The technical indicators show bullish momentum, but overbought conditions could prompt caution.

Positive Factors

Cost Efficiency

DBK will likely announce material cost efficiency measures to bring down the C/I ratio to below 60% by 2028.

Financial Performance

Strong results in 2Q25, with net income significantly above expectations, indicate a robust financial performance.

Profitability

The bank is seeing improvements in its profitability, with many issues that previously affected it being resolved or mitigated.

Negative Factors

Capital Concerns

Management put to bed the concerns on capital, which was essential ahead of the CMD in November.

Investment Banking Volatility

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 Challenges

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

$56.49B

Dividend Yield2.22%

Average Volume (3M)6.06M

Price to Earnings (P/E)9.3

Beta (1Y)1.31

Revenue Growth-4.39%

EPS Growth81.95%

CountryDE

Employees89,687

SectorFinancial

Sector Strength67

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.72

Shares Outstanding1,948,252,900

10 Day Avg. Volume6,292,452

30 Day Avg. Volume6,056,873

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 Cap1.11

Enterprise Value/Revenue1.09

Enterprise Value/Gross Profit1.64

Enterprise Value/Ebitda3.73

Forecast

1Y Price Target

$29.60

Price Target Upside-3.14% 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 AG generates revenue through various streams across its business segments. The Corporate Bank division earns income through transaction banking services, lending, and trade finance for corporations and institutions. The Investment Bank division generates revenue from advisory services, capital markets issuance, sales and trading of securities, and risk management solutions. The Private Bank segment provides retail banking services, including loans, deposits, and payment services, as well as wealth management services to affluent clients. Additionally, the Asset Management division, operating under the DWS brand, earns management and performance fees from its diversified portfolio of investment products. Income from interest and fees on loans, trading activities, and asset management services are significant contributors to Deutsche Bank's earnings.

Deutsche Bank AG Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: 15.71%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

Deutsche Bank's earnings call reflects solid financial performance with strong revenue growth and cost control, bolstered by a robust CET1 ratio. However, challenges in Origination & Advisory revenues, ongoing provisioning in commercial real estate, and FX headwinds present notable hurdles. The overall sentiment is balanced, considering both significant achievements and ongoing challenges.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Deutsche Bank's revenues grew by 6% to EUR 16.3 billion in the first half of 2025, in line with the full-year goal of around EUR 32 billion. The bank reported resilient revenues despite elevated volatility.

Cost Reduction Success

Noninterest expenses declined by 15% year-on-year to EUR 10.2 billion, resulting in a cost/income ratio of 62%. Excluding litigation impacts, noninterest expenses declined 4%.

Robust Pre-Provision Profit

Pre-provision profit for the first half was EUR 6.2 billion, nearly double the same period in 2024. Adjusting for litigation impacts, pre-provision profit was up 29% year-on-year.

Strong CET1 Ratio

CET1 ratio of 14.2% allows for capital deployment to grow business and increase shareholder returns. The bank is confident in surpassing its EUR 8 billion distribution target.

Private Bank and Asset Management Growth

Private Bank recorded a 56% increase in profit before tax with a return on tangible equity of 10.8%. Asset Management saw a 41% increase in profit before tax and maintained assets under management above EUR 1 trillion.

Negative Updates

Challenges in Origination & Advisory Revenues

Origination & Advisory revenues were significantly lower compared to a strong prior year, impacted by market uncertainty and delayed material transactions.

Commercial Real Estate Provisioning

CRE provisions year-to-date are EUR 430 million, surpassing expectations, especially with ongoing valuation pressure on existing nonperforming exposures, particularly on the U.S. West Coast.

FX Headwinds on Revenue

Weaker U.S. dollar resulted in a revenue pressure of a little less than EUR 400 million for the full year, impacting overall revenue targets.

Company Guidance

During the Q2 2025 analyst conference call, Deutsche Bank provided comprehensive guidance with several key metrics highlighting its financial performance and strategic outlook. The bank reported a 6% increase in revenues to EUR 16.3 billion for the first half of 2025, aligning with its full-year goal of approximately EUR 32 billion. Noninterest expenses fell by 15% year-on-year to EUR 10.2 billion, resulting in a cost/income ratio of 62%. The return on tangible equity reached 11% in the first half, surpassing the target of greater than 10%. The CET1 ratio stood at 14.2%, supporting capital deployment for business growth and shareholder returns. The bank achieved a pre-provision profit of EUR 6.2 billion, nearly double the same period in 2024, with a 37% increase in pretax profit. Adjusted costs remained flat, offsetting inflation and business investments. Deutsche Bank's diversified business mix saw 74% of revenues from stable streams in Corporate Bank, Private Bank, Asset Management, and FIC Financing. The bank also reported a 4% rise in net commission and fee income. With significant progress in operational efficiency, capital efficiencies reached EUR 30 billion, contributing to the strong CET1 ratio. The bank is focused on delivering its strategic agenda, which includes a pathway to eliminating the impact of the CRR3 output floor and commitments to shareholder returns, including a potential second share buyback.

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

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

Technical Analysis Sentiment

Positive

Last Price30.56

Price Trends

50DMA

25.79

Positive

100DMA

23.95

Positive

200DMA

20.65

Positive

Market Momentum

MACD

1.23

Negative

RSI

73.64

Negative

STOCH

89.38

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 30.56 is above the 20-day moving average (MA) of 27.52, above the 50-day MA of 25.79, and above the 200-day MA of 20.65, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 73.64 is Negative, neither overbought nor oversold. The STOCH value of 89.38 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBK	70 Outperform	$56.49B	9.35	9.19%	2.22%	-4.39%	81.95%
Sector *	62 Neutral	AU$10.23B	9.27	11.82%	5.04%	33.79%	41.40%
0RLW	―	€35.81B	13.67	9.11%	―	―	―
0H3T	―	€46.49B	23.67	19.61%	―	―	―
0M9A	―	€32.82B	14.50	19.63%	―	―	―
0KFE	―	€75.88B	13.54	18.25%	4.78%	―	―
0QA8	―	€31.25B	15.43	17.10%	―	―	―

* Financial Sector Average

Performance Comparison

DE:DBK

Deutsche Bank AG

30.57

17.63

136.35%

GB:0RLW

Commerzbank

32.86

21.01

177.30%

GB:0H3T

Deutsche Boerse

258.01

76.82

42.40%

GB:0M9A

Hannover Rueck

276.55

67.09

32.03%

GB:0KFE

Munich Reinsurance

606.38

186.43

44.39%

GB:0QA8

Talanx AG

122.57

59.10

93.11%

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.Date of analysis: Jul 25, 2025