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January 14, 2013Deutsche Bank AG, is a German global banking and financial services company.
Facts about Deutsche Bank
- Headquartered in the Frankfurt, Germany
- Employs more than 78,000 people
- Presence in over 70 countries
- Large presence in Europe and is growing in North America, Asia and key emerging markets
- In 2009, it was the largest foreign exchange dealer in the world, with a market share of 21%
- Deutsche Bank is listed on both the Frankfurt (FWB) and New York stock exchanges (NYSE)
- One of the major drivers of the collateralized debt obligation (CDO) market during the housing credit bubble from 2004–2008, creating approximately $32 billion worth
- 2008 was Deutsche Bank’s first loss-making year since five decades.
History of Deutsche Bank
- Founded in Berlin in 1870, as a specialist bank for foreign trade
- Founded by G. Siemens and L. Bamberger
- The company’s logo “Slash in a square” was designed in 1972 and is world-renowned blue logo
- It meant to represent growth within a risk-controlled framework.
Also Read about Top Ten Banks in India.
Structure/ Business Divisions of Deutsche Bank
Deutsche Bank consists of these business divisions:
1) Private & Business Clients
The division provides branch banking and financial services to private customers, self-employed clients as well as small and medium-sized businesses.
- In Personal Banking, they provide services of Fixed Deposits, Savings Account, Payroll Account, Online Banking, Loans, Mutual Funds, Portfolio Management Services, Online Trading, Insurance (both life and non-life) and Debit and Travel Cards.
- In Business Banking, Deutsche Bank provides Current Account, Magnus (a Working Capital lending product), Trade Services and Forex.
- In Private Banking, they provide advice through a dedicated relationship manager. Services include Financial Planning, Investment Research, Estate and Succession Planning and other premium products and privileges.
2) Markets
The Markets Business Division combines the sales, trading and structuring of financial market products like bonds, equities and equity-linked products, exchange-traded and over-the-counter derivatives, foreign exchange, money market instruments, securitized instruments and commodities.
3) Corporate Finance
It is the investment banking division of Deutsche Bank and provides services like mergers and acquisitions (M&A), advisory, debt and equity issuance and capital markets coverage of large and medium-sized corporations.
4) Global Transaction Banking
The division provides commercial banking products and services for both corporates and financial institutions worldwide, including domestic and cross-border payments, risk mitigation and international trade finance as well as trust, agency, depositary, custody and related services. Business units include Cash Management, Trade Finance and Trust & Securities Services.
5) Asset & Wealth Management
The division is made up of two Business Divisions:
- Asset Management and
- Private Wealth Management
Private Wealth Management serves the banking needs of wealthy individuals and families across the globe, whereas the Asset Management provides investment solutions to individual and institutional investors worldwide.
Read more about Asset Management Companies in India.
Company’s Share Financials
| Prev Close: | 46.78 |
| 1y Target Est: | 53.79 |
| Beta: | 1.96 |
| 52wk Range: | 27.03 – 52.54 |
| Avg Vol (3m): | 15,34,120 |
| Market Cap: | 43.32B |
| P/E (ttm): | 11.66 |
| EPS (ttm): | 4.01 |
| Div & Yield: | 0.68 (1.50%) |
In India, Deutsche Bank offers services of on-shore investment banking, institutional equities broking, asset and private wealth management, retail banking and business processes outsourcing.
In 2011, it earned revenue of €33.2 billion and a net income of €4.3 billion.
Competition Analysis
| Direct Competitor Comparison | ||||
| Deustche Bank | Citigroup | Commerz Bank AG | UBS | |
| Market Cap: | 43.80B | 123.52B | 12.30B | 61.17B |
| Employees: | 100474 | 261000 | 56287 | 63745 |
| Qtrly Rev Growth (yoy): | 0.18 | -0.36 | 0.65 | -0.02 |
| Revenue (ttm): | 40.06B | 58.60B | 9.37B | 26.87B |
| Operating Margin (ttm): | 0.19 | 0.14 | 0.03 | 0.14 |
| Net Income (ttm): | 3.79B | 7.15B | 1.34B | -643.92M |
| EPS (ttm): | 4.01 | 2.37 | 0.25 | -0.17 |
| P/E (ttm): | 11.79 | 17.79 | 8.47 | N/A |
| PEG (5 yr expected): | 1.2 | 0.98 | N/A | 4.86 |
| P/S (ttm): | 1.08 | 2.13 | 1.31 | 2.28 |
If we see the competitor analysis, we find that company has strong position as compared to other firms. In India it is expected that the RBI guidelines, which will be released for the NBFC will help the banking sector get some positive momentum.
Also it is a known fact the company’s operation in Euro region has declined, owing to the fact of second recession. To capitalize on the reduction, company is looking for expansion in emerging economies like India, China, etc. and also expanding in the region of North America.