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1. Company Snapshot

1.a. Company Description

Deutsche 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.

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1.b. Last Insights on DBK

Deutsche Bank's recent performance was driven by strong Q3 earnings, with a 7% year-over-year rise, fueled by revenue growth and easing credit loss provisions. The bank's investment banking segment, particularly fixed income, currencies, and commodities trading, saw significant growth, contributing to record net income of €4.82 billion for the first nine months. Additionally, the company's robust financial performance and strategic initiatives, despite challenges in commercial real estate and non-interest expenses, have been key drivers. Its Q3 results beat expectations, with earnings and revenue surprises of +19.75% and +0.40%, respectively.

1.c. Company Highlights

2. Bank's Q3 Earnings: A Strong Performance

The bank's financial performance in the first 9 months of 2025 was robust, with revenues reaching EUR 24.4 billion, in line with the full-year goal of around EUR 32 billion before FX effects. The adjusted costs at EUR 15.2 billion were consistent with guidance, and the post-tax return on tangible equity was 10.9%, meeting the full-year target of above 10%. The cost/income ratio at 63% was also in line with the target of below 65%. The bank's diluted earnings per share (EPS) in Q3 was EUR 0.89, and the tangible book value per share increased 3% year-on-year to EUR 30.17.

Publication Date: Oct -30

📋 Highlights
  • Record Profitability & Strategic Targets Met: Post-tax return on tangible equity at 10.9% meets full-year target, with cost/income ratio at 63% below 65% and CET1 ratio rising to 14.5%.
  • Revenue Growth & Stability: 7% year-on-year revenue growth (EUR 24.4B in 9 months) with 74% from predictable streams and stable NII, tracking EUR 32B annual goal.
  • Operational Efficiency: EUR 2.4B in operational efficiencies (95% of EUR 2.5B target) and 8% lower noninterest expenses, driven by cost discipline and lower nonoperating costs.
  • Capital Strength & Distribution: EUR 30B RWA reductions achieved, CET1 guidance of 14% by 2025, and plans for EUR 14% capital distribution with 2026 buybacks anticipated.
  • Germany Fiscal Stimulus Impact: EUR 500B in committed investments under "Made for Germany" initiative, with expected 1.5% GDP growth in 2026 and tax/reform momentum.

Revenue Growth and Profitability

The bank saw continued revenue growth of 7% with momentum across businesses. Net commission and fee income was up 5% year-on-year, while NII across key banking book segments and other funding was essentially stable. 74% of revenues came from more predictable revenue streams. The bank's diversified and complementary business mix resulted in reported revenue growth of 7% year-on-year, or 10% if adjusted for foreign exchange translation impacts.

Capital Position and Distribution

The bank's CET1 ratio rose to 14.5% in the quarter, driven by organic capital generation. The bank is confident in its capital distribution path, with a guidance of 14% by the end of 2025. The bank expects to distribute excess capital from the start of 2026 and will apply for another buyback in the first half of 2026. The bank's leverage ratio was 4.6%, down 11 basis points, principally from higher loans and commitments alongside increased settlement activity at quarter end.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 0.8, the bank's valuation appears reasonable. The bank's dividend yield is 2.19%, which is attractive for income investors. Analysts estimate next year's revenue growth at 2.5%. The bank is on track to meet or exceed all its 2025 strategic goals, and the management is confident in achieving a return on tangible equity of above 10% and a cost/income ratio of below 65%. The actual EPS came out at EUR 0.4809, relative to estimates at EUR 0.664.

Business Segment Performance

The Corporate Bank's revenues are expected to rebound in Q4, driven by a trough in revenues and a mild increase in NII. The Private Bank has seen broad-based strength across personal and wealth management, with distinct margin trends compared to the Corporate Bank. The bank is confident in its asset quality, with provisions expected to be lower in the second half of 2025.

3. NewsRoom

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Canadian Big Bank Earnings Top Expectations, Raise Dividends

Dec -04

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Benign External Conditions, Low Foreign Exchange Volatility Should Continue Supporting Latin American Currencies in 2026, Says Deutsche Bank

Dec -03

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Canada's Big Bank Earnings Off To A Strong Start On Earnings Beat, Dividend Hike

Dec -03

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Canadian Banks Need Flawless Earnings To Keep The Rally Alive

Dec -02

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Zacks Industry Outlook Highlights HSBC, Mitsubishi UFJ Financial and Deutsche Bank

Dec -01

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Why Deutsche Bank says 2026 promises to be anything but boring

Nov -30

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Does Deutsche Bank’s 95% Stock Surge Signal More Room to Grow in 2025?

Nov -29

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Is Bank of America Riskier Now According to FSB's 2025 G-SIB List?

Nov -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.89%)

6. Segments

Investment Bank

Expected Growth: 2.5%

The Investment Bank segment of Deutsche Bank AG's growth is driven by strong performance in advisory and origination, robust trading revenues, and increased demand for digital transformation services. A 2.5% growth rate suggests a positive outlook for the division, likely fueled by expanding corporate and institutional client relationships, and strategic investments in technology and talent.

Private Bank

Expected Growth: 3.2%

The Private Bank segment of Deutsche Bank AG's growth of 3.2% is driven by increased client assets, higher lending volumes, and strong performance in wealth management services. This growth is also attributed to the bank's strategic focus on digital transformation and enhanced customer experience, leading to increased client acquisition and retention.

Corporate Bank

Expected Growth: 2.8%

The Corporate Bank segment of Deutsche Bank AG's growth of 2.8% is driven by increased lending volumes, higher interest rates, and a strong performance in transaction banking. Additionally, digital transformation and strategic investments in technology have enhanced operational efficiency, contributing to the segment's growth.

Asset Management (AM)

Expected Growth: 4.0%

Deutsche Bank's Asset Management (AM) growth of 4.0% is driven by increased demand for sustainable investments, expansion of passive management offerings, and strong inflows into equities and fixed income products. The segment's growth is also supported by digital transformation and enhanced client services, allowing for greater market share capture and revenue increase.

Corporate & Other (C&O)

Expected Growth: 2.2%

The 2.2% growth in Corporate & Other (C&O) segment of Deutsche Bank AG is driven by increased fees from investment banking, corporate finance, and transaction banking, as well as improved performance in asset management and private wealth management, offset by ongoing strategic investments and restructuring costs.

7. Detailed Products

Corporate Banking

Cash management, trade finance, and corporate lending services for large corporations and institutions

Investment Banking

Mergers and acquisitions, equity and debt capital markets, and advisory services for corporate clients

Asset Management

Investment management services for institutional and private clients, including wealth management and asset allocation

Private Banking

Wealth management and investment services for high net worth individuals and families

Retail Banking

Consumer banking services, including current accounts, savings accounts, and consumer loans

Transaction Banking

Cash management, payment services, and trade finance solutions for corporate clients

Wealth Management

Investment and wealth planning services for private clients, including portfolio management and wealth structuring

Digital Banking

Online and mobile banking services for retail and corporate clients

8. Deutsche Bank Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

Deutsche Bank AG operates in the financial services industry, where substitutes such as online banking, fintech companies, and other traditional banks are available. However, the bank's diversified services, global presence, and brand reputation reduce the threat of substitutes.

Bargaining Power Of Customers

Deutsche Bank AG serves a large and diverse customer base, including individual and institutional clients. Customers have a range of alternatives, which increases their bargaining power. Additionally, regulatory requirements such as PSD2 and Open Banking have increased customer mobility.

Bargaining Power Of Suppliers

Deutsche Bank AG has a large and diversified supplier base, including technology providers, service providers, and other financial institutions. The bank's scale and market presence reduce the bargaining power of individual suppliers.

Threat Of New Entrants

The financial services industry is heavily regulated, and new entrants face significant barriers to entry, including capital requirements, licensing, and regulatory compliance. Deutsche Bank AG's established brand, client relationships, and expertise create a high hurdle for new entrants.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players and new entrants competing for market share. Deutsche Bank AG competes with global banks, regional banks, and fintech companies, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.06%
Debt Cost 36.16%
Equity Weight 33.94%
Equity Cost 9.44%
WACC 27.09%
Leverage 194.65%

11. Quality Control: Deutsche Bank Aktiengesellschaft passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
KBC

A-Score: 7.4/10

Value: 6.9

Growth: 6.0

Quality: 6.7

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
SEB

A-Score: 7.0/10

Value: 5.6

Growth: 5.4

Quality: 5.6

Yield: 8.1

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Danske Bank

A-Score: 6.8/10

Value: 5.5

Growth: 4.4

Quality: 5.6

Yield: 8.1

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
UniCredit

A-Score: 6.7/10

Value: 6.2

Growth: 5.9

Quality: 6.8

Yield: 6.9

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Lloyds Banking

A-Score: 6.3/10

Value: 6.6

Growth: 2.8

Quality: 5.6

Yield: 6.9

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Deutsche Bank

A-Score: 5.8/10

Value: 8.3

Growth: 3.4

Quality: 5.9

Yield: 3.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.11$

Current Price

31.11$

Potential

-0.00%

Expected Cash-Flows