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Deutsche Bank AG (DB) Stock

Deutsche Bank AG Stock Details, Movements and Public Alerts

Deutsche Bank (DB): How Christian Sewing Engineered Germany's Banking Turnaround After Years of Scandals

When Christian Sewing became CEO of Deutsche Bank in April 2018, the institution was a global punchline—billions in fines for money laundering and sanctions violations, a collapsing U.S. investment banking operation, and a share price down 85% from pre-crisis highs. Seven years later, Sewing has orchestrated one of Europe's most impressive banking turnarounds. He exited unprofitable equities trading, shuttered loss-making U.S. offices, reduced headcount by 25%, and refocused the bank on its strengths: European corporate banking, transaction banking (cash management and trade finance), private banking through the Postbank network, and asset management via DWS. Deutsche Bank now generates €30+ billion in annual revenue with improving profitability—2024 post-tax profit exceeded €5 billion. The stock trades at 9.4x forward earnings (versus 12x for European peers), offering a 1.89% dividend yield. For investors, DB is a contrarian bet: if European corporate lending rebounds and Sewing avoids new scandals, the stock could re-rate to peer multiples. But the bank's history of compliance failures means risk remains elevated.

52-Week Range

$38.78 - $16.15

-3.76% from high · +131.08% from low

Avg Daily Volume

2,863,411

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

13.02

Below market average

Forward P/E

9.81

Earnings expected to grow

PEG Ratio

0.49

Potentially undervalued

Price to Book

0.81

EPS (TTM)

$2.91

Price to Sales

2.49

Beta

1.02

Similar volatility to market

How is DB valued relative to its earnings and growth?
Deutsche Bank AG trades at a P/E ratio of 13.02, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 9.81 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.49 suggests the stock may be undervalued relative to its growth rate.
What is DB's risk profile compared to the market?
With a beta of 1.02, Deutsche Bank AG is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 0.81 indicates the stock trades below its accounting value, which could signal value or distress.

Performance & Growth

Profit Margin

19.20%

Operating Margin

32.10%

Return on Equity

7.60%

Return on Assets

0.43%

Revenue Growth (YoY)

8.90%

Earnings Growth (YoY)

9.90%

How profitable and efficient is DB's business model?
Deutsche Bank AG achieves a profit margin of 19.20%, meaning it retains $19.20 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 32.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 7.60% and ROA at 0.43%, the company achieves moderate returns on invested capital.
What are DB's recent growth trends?
Deutsche Bank AG's revenue grew by 8.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 9.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against BANKS - REGIONAL industry averages for proper context.

Dividend Information

Dividend Per Share

$0.68

Dividend Yield

1.76%

Ex-Dividend Date

May 23, 2025

Dividend Date

May 27, 2025

What dividend income can investors expect from DB?
Deutsche Bank AG offers a dividend yield of 1.76%, paying $0.68 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of May 23, 2025.
How reliable is DB's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Deutsche Bank AG pays $0.68 per share in dividends against earnings of $2.91 per share, resulting in a payout ratio of 23.37%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for May 27, 2025.

Company Size & Market

Market Cap

$74.4B

Revenue (TTM)

$29.86B

Revenue/Share (TTM)

$15.20

Shares Outstanding

1.93B

Book Value/Share

$40.49

Asset Type

Common Stock

What is DB's market capitalization and position?
Deutsche Bank AG has a market capitalization of $74.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.93B shares outstanding, the company's ownership is widely distributed. As a participant in the BANKS - REGIONAL industry, it competes with other firms in this sector.
How does DB's price compare to its book value?
Deutsche Bank AG's book value per share is $40.49, while the current stock price is $37.32, resulting in a price-to-book (P/B) ratio of 0.92. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$42.60

14.15% upside potential

Analyst Recommendations

Strong Buy

0

Buy

1

Hold

0

Sell

0

Strong Sell

0

How reliable are analyst predictions for DB?
1 analysts cover DB with 100% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $42.60 implies 14.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on DB?
Current analyst recommendations:01 Buy, 000The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:23 AM

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Deutsche Bank (DB) Stock Analysis 2025: Complete Investment Guide

In Q3 2024, Deutsche Bank reported net revenues of €7.5 billion and profit after tax of €1.5 billion, demonstrating the sustainability of Christian Sewing's transformation. The bank's restructuring is complete: investment banking losses have been eliminated, cost-to-income ratio has dropped from 97% (2018) to 70% (2024), and capital ratios now exceed regulatory requirements. Deutsche Bank serves 22 million customers across corporate banking (German Mittelstand, European multinationals), private banking (affluent Germans via Postbank), transaction banking (cash management for corporations), and asset management (DWS with €900B+ AUM). The investment case is simple: if European economic growth stabilizes and corporate lending recovers, Deutsche Bank's earnings could grow 15-20% while the stock re-rates from 9.4x forward P/E to 12x (peer average). The 1.89% dividend yield provides income while you wait.

Business Model & Competitive Moat

Deutsche Bank operates four core divisions: Corporate Bank (lending and transaction banking to corporations), Investment Bank (M&A advisory, debt capital markets, fixed income trading), Private Bank (retail banking via Postbank, wealth management), and Asset Management (DWS mutual funds and ETFs). The moat derives from sticky corporate relationships—German companies have banked with Deutsche Bank for generations, creating embedded cash management and lending ties. Transaction banking (processing payments, trade finance) generates predictable fees with low capital requirements. The Postbank network provides retail deposit funding (cheaper than wholesale funding). DWS asset management diversifies revenue beyond interest rates.

Christian Sewing's strategic repositioning narrowed focus to areas where Deutsche Bank has competitive advantages: European corporate banking (relationships with German Mittelstand), fixed income trading (serving European institutions), and wealth management (serving German ultra-high-net-worth families). By exiting unprofitable U.S. equities trading and cash equities globally, Sewing eliminated loss-making businesses that consumed capital. The new Deutsche Bank is smaller, more focused, and structurally profitable.

Financial Performance

Deutsche Bank's financial performance has stabilized after years of losses. 2024 full-year results show the transformation is working:

  • •Revenue: €30.2B in 2024 (stable vs 2023), with fee income offsetting lower interest margins
  • •Profitability: Post-tax profit of €5.3B in 2024 (vs €4.9B in 2023), demonstrating operational leverage
  • •Cost Management: Cost-to-income ratio 70% (down from 97% in 2018), targeting 62.5% by 2025
  • •Capital Strength: CET1 ratio 13.8% (above 13% regulatory requirement), enabling €1.85/share dividend
  • •Valuation: Trading at 9.4x forward P/E (vs 12-14x for UBS, BNP Paribas, Barclays)

Growth Catalysts

  • •European Economic Recovery: Corporate lending volumes tied to Eurozone GDP growth—any acceleration boosts loan demand
  • •Rising Interest Rates: Higher rates expand net interest margin (spread between deposit costs and loan yields)
  • •M&A Advisory Recovery: European M&A volumes rebounding from 2023 lows—Deutsche Bank advises on major deals
  • •DWS Growth: Asset management fee income grows with markets (€900B+ AUM generates stable revenue)
  • •Dividend Increases: Strong capital ratios enable dividend growth from €1.85 to €2.50+ per share by 2026

Risks & Challenges

  • •Compliance & Legal Risk: History of fines for money laundering, sanctions violations—any new scandal would crater the stock
  • •European Economic Weakness: German recession, manufacturing decline reduce corporate loan demand and credit quality
  • •Competition from Fintechs: N26, Revolut, Trade Republic erode retail banking market share among young Germans
  • •Regulatory Capital Requirements: Basel IV implementation could require additional capital, limiting dividend capacity
  • •Reputational Damage: Brand tainted by past scandals makes attracting top talent and winning new clients harder

Competitive Landscape

Deutsche Bank competes in European banking against UBS (Switzerland), BNP Paribas (France), Barclays (UK), and UniCredit (Italy). In Germany specifically, Deutsche Bank faces Commerzbank (domestic corporate banking), DZ Bank (cooperative banking), and KfW (government-backed lending). Christian Sewing's decision to exit U.S. investment banking concedes that market to JPMorgan, Goldman Sachs, and Morgan Stanley. However, in European corporate banking and German wealth management, Deutsche Bank retains leadership positions through multi-decade client relationships.

The competitive advantage is relationship depth: German multinationals like Volkswagen, Siemens, and BASF have banked with Deutsche Bank for 150+ years. These ties are difficult for foreign banks to replicate. In transaction banking (cash management, trade finance), Deutsche Bank's pan-European network creates switching costs—corporations don't change their payment infrastructure lightly. The challenge is fintechs like Wise and Adyen unbundling transaction banking with better technology and lower fees.

Who Is This Stock Suitable For?

Perfect For

  • ✓Deep-value investors willing to accept reputational risk
  • ✓European economy bulls betting on Eurozone recovery
  • ✓Dividend investors seeking 1.89% yield with growth potential
  • ✓Contrarian investors betting on banking sector turnaround

Less Suitable For

  • ✗Growth investors (slow/no revenue growth expected)
  • ✗ESG-focused investors (poor governance history, fossil fuel exposure)
  • ✗Risk-averse investors (compliance scandals remain possible)
  • ✗U.S.-focused portfolios (70%+ of revenue from Europe)

Investment Thesis

Deutsche Bank is a turnaround story—Christian Sewing has restructured the bank, eliminated losses, and rebuilt capital. The stock trades at a 30% discount to European peers (9.4x forward P/E vs 12-14x), reflecting skepticism about management's ability to avoid new scandals and deliver sustained profitability. The bull case is simple: if DB executes cleanly for 2-3 more years, the stock re-rates to peer multiples (implying 30-40% upside). The 1.89% dividend yield provides income while waiting for re-rating. Risks are compliance failures, European recession, and loss of market share to fintechs.

This is a value play for investors who believe the worst is behind Deutsche Bank. Christian Sewing has delivered on his promises (exit unprofitable businesses, cut costs, rebuild capital), so execution risk is lower than in 2018-2020. However, the stock will remain discounted until the bank demonstrates 3-5 years of clean operations without major fines or scandals. For patient investors with high risk tolerance, the reward-to-risk is attractive at current prices. For those seeking sleep-at-night quality, Deutsche Bank is not suitable—too many skeletons in the closet.

Conclusion

Deutsche Bank is a HOLD for existing shareholders and a selective BUY for deep-value investors on dips below $14. The restructuring is complete, capital is strong, and the valuation is cheap. However, compliance risk and reputational overhang mean this is a high-risk/high-reward bet. Best suited for contrarian investors who believe Christian Sewing can keep the bank scandal-free while European economy recovers. Avoid if you need certainty or dislike European banking risk.
Bull Case
$22 (40% upside) - No new scandals, European recovery drives loan growth, stock re-rates to 12x P/E
Base Case
$17 (8% upside) - Steady execution, modest growth, valuation discount persists at 10x P/E
Bear Case
$11 (30% downside) - New compliance scandal, European recession, loss of corporate clients to fintechs

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