Deutsche Bank Aktiengesellschaft (DBK.DE) | Investment Case

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

Last Price	33.73
Change Percentage	0.90%
Open	33.9
Previous Close	33.44
Market Cap ( Millions)	64453
Volume	2596654
Year High	34.26
Year Low	16.58
M A 50	32.5
M A 200	29.14

FCF Yield	0.00%
Dividend Yield	2.02%
ROE	9.22%
Debt / Equity	222.80%
Net Debt / EBIDTA	1534.24%
Price To Book	0.98
Price Earnings Ratio	9.45
Price To FCF	0
Price To sales	1.06
EV / EBITDA	21.97

2. Deutsche Bank's Q4 2025 Earnings: A Strong Finish to a Transformative Year

Deutsche Bank reported a strong set of results for Q4 2025 and the full year, with revenues reaching EUR 32 billion, a 6% compound annual growth rate since 2021. The bank's pretax profit was EUR 9.7 billion, and net profit was EUR 7.1 billion, with a post-tax return on tangible equity of 10.3%, meeting the full-year target of above 10%. The actual EPS for the full year came in at EUR 0.727, beating estimates of EUR 0.606. The bank's capital position remains strong, with a CET1 ratio of 14.2%, and distributions to shareholders increased to EUR 2.9 billion, consistent with the 50% payout commitment.

Publication Date: Feb -02

                                    📋 Highlights
                                    Revenue & Profitability Growth:
                                                Revenues reached EUR 32 billion with a 6% CAGR since 2021, pretax profit of EUR 9.7 billion, and a post-tax RoTE of 10.3%.
Strong Capital Position:
                                                CET1 ratio at 14.2%, distributions to shareholders rose to EUR 2.9 billion, with cumulative 2021–2025 payouts exceeding EUR 8.5 billion.
Business Segment Performance:
                                                Corporate Bank revenue grew over 40% since 2021, Private Bank achieved a cost-income ratio below 70%, and Investment Bank Q4 revenues increased 5% YoY.
2026 Guidance:
                                                Targets EUR 33 billion in revenue, EUR 14 billion net interest income, and cost growth capped at EUR 21.1 billion, with RoTE above 10% by 2028.
Capital Efficiency & Sustainability:
                                                Cost-income ratio of 64%, sustainable finance volumes hit EUR 98 billion in 2025, and plans for incremental buybacks from 2026 earnings.

                                

Business Performance

The key drivers of the improved profitability include a diversified business mix, with the Corporate Bank delivering revenue growth of over 40% since 2021, and the Investment Bank gaining market share. The Private Bank's transformation led to a cost-to-income ratio below 70% and returns above 10% in 2025. The bank's sustainability agenda also made significant progress, with sustainable finance volumes reaching EUR 98 billion in 2025.

Outlook and Guidance

For 2026, the bank expects net interest income to increase to around EUR 14 billion, driven by targeted portfolio growth and structural hedge rollover. The company expects revenues to grow to around EUR 33 billion, aided by banking book NII growing to EUR 14 billion and growth in net commission and fee income. Noninterest expenses are expected to increase to slightly above EUR 21 billion, including around EUR 900 million of incremental investments to unlock growth and efficiencies.

Valuation and Dividend Yield

Deutsche Bank's current P/TBV ratio is 0.97, indicating that the stock is trading close to its tangible book value. The dividend yield is 2.04%, providing a relatively attractive return for income investors. With the bank's strong capital position and commitment to distributions, investors can expect continued returns through dividends and potential buybacks.

Credit Loss Provisions and Asset Quality

The bank expects a modest reduction in credit loss provisions in 2026, with a trajectory down to 30 basis points. The company's credit conditions remain stable, with some improvement in certain areas. However, the bank remains cautious on Commercial Real Estate (CRE), where potential downward revisions in appraisals could impact asset quality.

Management Confidence and Future Plans

Deutsche Bank's management team, including Christian Sewing and James von Moltke, expressed confidence in achieving EUR 33 billion in revenue, driven by improvements across businesses. The company is targeting over 3% revenue growth in 2026, with potential for acceleration. The Investment Bank pipeline is up double-digit compared to 2025, supporting conviction in revenue growth.

3. NewsRoom

Gold Prices Are Still Headed for $6,000, Says Deutsche Bank

Feb -02

Source:

Deutsche Bank Raid Revives Compliance Questions Despite Profits And Valuation Upside

Jan -31

Source:

Deutsche Bank Aktiengesellschaft Q4 Earnings Call Highlights

Jan -30

Source:

Deutsche Bank AG (DB) (Q4 2025) Earnings Call Highlights: Strong Revenue Growth and Strategic ...

Jan -30

Source:

Deutsche Bank appointed as Successor Depositary Bank for the American Depositary Receipt Program of Swisscom AG

Jan -30

Source:

Deutsche Bank profit soars on gains across all businesses

Jan -30

Source:

Deutsche Bank and DWS explore investment in life insurer Frankfurter Leben

Jan -30

Source:

German prosecutors’ raid on Deutsche Bank hurts the lender’s attempts to leave its long history of compliance failures in the past

Jan -30

Source:

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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

KBC

A-Score: 7.2/10

Value: 5.3

Growth: 6.8

Quality: 6.0

Yield: 7.5

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

SEB

A-Score: 7.0/10

Value: 5.7

Growth: 6.2

Quality: 4.9

Yield: 8.1

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

Danske Bank

A-Score: 6.6/10

Value: 5.5

Growth: 4.6

Quality: 5.5

Yield: 6.9

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

UniCredit

A-Score: 6.5/10

Value: 4.0

Growth: 6.7

Quality: 5.8

Yield: 7.5

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

Lloyds Banking

A-Score: 6.1/10

Value: 5.0

Growth: 2.7

Quality: 5.4

Yield: 6.9

Momentum: 9.5

Volatility: 7.3

1-Year Total Return ->

Deutsche Bank

A-Score: 5.7/10

Value: 6.7

Growth: 4.9

Quality: 5.1

Yield: 3.1

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

43.20%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

27.09%

Deutsche Bank Aktiengesellschaft - DE0005140008

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on DBK

1.c. Company Highlights

Cheaper

Strong Momentum

Lower Quality

Earnings Beats

Revenues Beats

Average Quality

Earnings Miss

Fairly Valued

Average Yield

Lower Yield

Revenues Miss

More Volatile

Medium Volatility

2. Deutsche Bank's Q4 2025 Earnings: A Strong Finish to a Transformative Year

Business Performance

Outlook and Guidance

Valuation and Dividend Yield

Credit Loss Provisions and Asset Quality

Management Confidence and Future Plans

3. NewsRoom

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%

Private Bank

Expected Growth: 3.2%

Corporate Bank

Expected Growth: 2.8%

Asset Management (AM)

Expected Growth: 4.0%

Corporate & Other (C&O)

Expected Growth: 2.2%

7. Detailed Products

Corporate Banking

Investment Banking

Asset Management

Private Banking

Retail Banking

Transaction Banking

Wealth Management

Digital Banking

8. Deutsche Bank Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.73$

12.e Scoring ^Insights

12.f DCF ^BETA