Deutsche Bank Aktiengesellschaft (DB) Bundle
A Brief History of Deutsche Bank
Company Overview
Deutsche Bank AG, founded in 1870, is a global banking and financial services company headquartered in Frankfurt, Germany. It operates in over 70 countries and provides a range of financial services including investment banking, asset management, private banking, and retail banking.
Recent Financial Performance (2024)
As of September 30, 2024, Deutsche Bank reported total net revenues of €9.47 billion for the third quarter, an increase from €7.78 billion in the same quarter of 2023. For the nine months ended September 30, 2024, net revenues reached €24.15 billion, up from €22.62 billion year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Net Revenues (€ million) | 9,470 | 7,781 | 24,154 | 22,621 |
| Profit Before Tax (€ million) | 3,065 | 1,661 | 4,084 | 3,745 |
| Cost/Income Ratio | 50.1% | 66.4% | 69.3% | 71.7% |
| Post-tax Return on Average Shareholders' Equity | 13.5% | 10.4% | 7.6% | 5.6% |
Assets Under Management
As of September 30, 2024, Deutsche Bank's assets under management (AuM) were €963 billion, reflecting a growth of €30 billion from the previous quarter. This growth was attributed to net inflows of €18 billion and positive market appreciation.
Employee Metrics
The total number of employees at Deutsche Bank as of September 30, 2024, was 37,497, down from 38,408 in the previous year, indicating a strategic reduction in workforce as part of operational efficiency measures.
| Employee Metrics | 2024 | 2023 |
|---|---|---|
| Total Employees | 37,497 | 38,408 |
| Employees (Front Office) | 20,338 | 19,635 |
Capital and Liquidity Ratios
Deutsche Bank maintained a Common Equity Tier 1 (CET1) capital ratio of 13.5% as of September 30, 2024, slightly improved from 12.9% in the previous year. The bank's liquidity coverage ratio stood at 135%, significantly above the regulatory minimum of 100%, indicating strong liquidity management.
| Capital Ratios | September 30, 2024 | December 31, 2023 |
|---|---|---|
| CET1 Capital Ratio | 13.5% | 12.9% |
| Liquidity Coverage Ratio | 135% | 140% |
Strategic Developments
In 2024, Deutsche Bank continued its share repurchase program, completing a buyback of €675 million, which was part of a broader strategy to enhance shareholder returns. The bank also aims for a total payout ratio of 50% from 2025, reflecting its commitment to returning capital to shareholders while maintaining regulatory capital requirements.
Outlook
Looking ahead, Deutsche Bank anticipates a compound annual growth rate of revenues between 5.5% and 6.5% from 2021 to 2025, with a cost/income ratio target of less than 62.5% as it continues to enhance operational efficiency and capital management.
A Who Owns Deutsche Bank Aktiengesellschaft (DB)
Ownership Structure
As of 2024, Deutsche Bank Aktiengesellschaft (DB) has a diverse ownership structure comprising institutional investors, private investors, and other stakeholders. The largest shareholders are typically major investment funds and financial institutions.
Major Shareholders
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| BlackRock, Inc. | 6.5% | Institutional Investor |
| Vanguard Group, Inc. | 4.7% | Institutional Investor |
| Deutsche Bank AG (Treasury Shares) | 2.3% | Corporate |
| State Street Corporation | 3.1% | Institutional Investor |
| Other Institutional Investors | 30.0% | Various |
| Private Investors | 49.4% | Individual |
Recent Changes in Ownership
As of September 30, 2024, Deutsche Bank's total shareholders' equity was €64.8 billion, reflecting adjustments due to share buybacks and other corporate actions. In early 2024, the bank initiated a share repurchase program of up to €675 million, which concluded in July 2024, repurchasing 46.4 million common shares.
Shareholder Engagement
Deutsche Bank actively engages with its shareholders through annual general meetings (AGMs) and other investor relations initiatives, aiming to enhance shareholder value and address investor concerns regarding corporate governance and financial performance.
Historical Context
Historically, Deutsche Bank has seen fluctuating ownership percentages among its top shareholders, influenced by market conditions and strategic decisions made by the bank's management. The trend towards greater institutional ownership reflects broader shifts in the financial markets over the past decade.
Conclusion
The ownership of Deutsche Bank Aktiengesellschaft is characterized by a mix of institutional and private investors, with significant stakes held by major investment firms. This diverse ownership structure plays a crucial role in shaping the bank's strategic direction and governance.
Deutsche Bank Aktiengesellschaft (DB) Mission Statement
Overview of Mission Statement
Deutsche Bank aims to be the leading global bank, serving clients in a sustainable manner. The bank emphasizes its commitment to providing innovative financial solutions while adhering to the highest standards of governance and compliance.
Strategic Goals
- Client-Centric Approach: Deutsche Bank focuses on understanding client needs and delivering tailored solutions to foster long-term relationships.
- Sustainability: The bank is committed to sustainable finance, aiming to integrate environmental, social, and governance (ESG) factors into its business strategy.
- Operational Efficiency: Deutsche Bank is focused on streamlining operations to enhance efficiency and reduce costs, targeting an adjusted cost/income ratio of around 65% by 2025.
Financial Performance Indicators
As of September 30, 2024, Deutsche Bank reported significant financial metrics reflecting its operational success:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Profit Before Tax (€ billion) | 4.2 | 2.4 | 78 |
| Post-tax Profit (€ billion) | 3.1 | 1.7 | 85 |
| Net Revenues (€ billion) | 9.5 | 7.8 | 22 |
| Cost/Income Ratio (%) | 50.1 | 66.4 | -16.3 |
| Return on Equity (%) | 17.3 | 9.5 | 7.9 |
Operational Highlights
In the third quarter of 2024, Deutsche Bank made strides in various operational areas:
- Revenue Growth: Revenues grew by 22% year on year, with commissions and fee income increasing by 5%.
- Cost Management: The bank achieved savings of €1.7 billion from its €2.5 billion Operational Efficiency program.
- Asset Management: Assets under management increased to €625 billion, driven by net inflows of €8 billion and positive market movements of €9 billion.
Commitment to Sustainability
Deutsche Bank has strengthened its focus on sustainable finance, with notable transactions in the third quarter of 2024:
- Participation in a €3.0 billion sustainability-linked revolving credit facility for Uniper SE.
- A €227 million financing package for solar-powered streetlamps in Senegal.
- A $300 million credit facility for Swift Current Energy, supporting clean energy projects.
Outlook
For the remainder of 2024, Deutsche Bank expects to maintain revenue growth, targeting total revenues around €30 billion. The bank anticipates continued resilience in its business segments and aims to enhance its market position through strategic investments and operational improvements.
| Metric | 2024 Guidance | 2023 Actual |
|---|---|---|
| Total Revenues (€ billion) | ~30 | ~28 |
| Adjusted Cost/Income Ratio (%) | ~65 | ~71.7 |
| Post-tax Return on Equity (%) | ~10 | 7.1 |
How Deutsche Bank Aktiengesellschaft (DB) Works
Overview of Operations
Deutsche Bank operates through four main segments: Corporate Bank, Investment Bank, Private Bank, and Asset Management. The bank has made strides in its Global Hausbank strategy, focusing on revenue growth, operational efficiency, and capital efficiency.
Financial Performance
As of September 30, 2024, Deutsche Bank reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Profit Before Tax (€ billion) | 4.2 | 2.4 | 78% |
| Post-tax Profit (€ billion) | 3.1 | 1.7 | 85% |
| Net Revenues (€ billion) | 9.5 | 7.8 | 22% |
| Cost/Income Ratio (%) | 50 | 66 | -16 |
| Return on Equity (RoE) (%) | 17.3 | 9.5 | 7.8 |
| Return on Tangible Equity (RoTE) (%) | 19.3 | 10.6 | 8.7 |
Segment Results
Corporate Bank
For Q3 2024, the Corporate Bank reported:
| Metric | Q3 2024 (€ million) | Q3 2023 (€ million) | Change (%) |
|---|---|---|---|
| Profit Before Tax | 539 | 760 | -29% |
| Net Revenues | 1,841 | 1,890 | -3% |
| Provision for Credit Losses | 126 | 11 | N/M |
| Cost/Income Ratio (%) | 64 | 59 | +5 |
Investment Bank
For Q3 2024, the Investment Bank reported:
| Metric | Q3 2024 (€ million) | Q3 2023 (€ million) | Change (%) |
|---|---|---|---|
| Profit Before Tax | 813 | 672 | 21% |
| Net Revenues | 2,523 | 2,271 | 11% |
| Provision for Credit Losses | 135 | 40 | N/M |
| Cost/Income Ratio (%) | 63 | 68 | -5 |
Private Bank
For Q3 2024, the Private Bank reported:
| Metric | Q3 2024 (€ million) | Q3 2023 (€ million) | Change (%) |
|---|---|---|---|
| Profit Before Tax | 319 | 387 | -18% |
| Net Revenues | 2,319 | 2,341 | -1% |
| Provision for Credit Losses | 205 | 174 | 18% |
| Cost/Income Ratio (%) | 77 | 76 | +1 |
Asset Management
For Q3 2024, the Asset Management segment reported:
| Metric | Q3 2024 (€ million) | Q3 2023 (€ million) | Change (%) |
|---|---|---|---|
| Net Revenues | 660 | 594 | 11% |
| Assets Under Management (€ billion) | 963 | 933 | 3% |
Capital and Liquidity Positions
As of September 30, 2024, Deutsche Bank's capital and liquidity metrics were as follows:
| Metric | Value |
|---|---|
| Common Equity Tier 1 Capital Ratio (%) | 13.8 |
| Liquidity Coverage Ratio (%) | 135 |
| Net Stable Funding Ratio (%) | 122 |
| Leverage Ratio (%) | 4.6 |
| Stressed Net Liquidity Position (€ billion) | 72 |
| Total Equity (€ billion) | 78.9 |
Workforce and Operational Efficiency
As of September 30, 2024, Deutsche Bank employed 90,236 full-time equivalents (FTEs), reflecting an increase of approximately 766 FTEs from the previous quarter. The bank's operational efficiency program is expected to yield savings of approximately € 2.5 billion by the end of 2024.
Outlook
Deutsche Bank anticipates revenues for the full year 2024 to be around € 30 billion, supported by the resilience of its businesses and continued growth momentum.
How Deutsche Bank Aktiengesellschaft (DB) Makes Money
Revenue Sources
As of 2024, Deutsche Bank's revenue generation is derived from multiple business segments, each contributing to the overall profitability of the institution. The key segments include:
- Corporate Bank
- Investment Bank
- Private Bank
- Asset Management
- Corporate & Other
Financial Performance Overview
In the third quarter of 2024, Deutsche Bank reported total net revenues of €9.47 billion, reflecting a 22% increase year-over-year. This growth was primarily driven by strong performance across the business segments.
| Segment | Net Revenues (Q3 2024 in € million) | Net Revenues (Q3 2023 in € million) | Change (%) |
|---|---|---|---|
| Corporate Bank | 1,841 | 1,890 | -3% |
| Investment Bank | 2,523 | 2,271 | 11% |
| Private Bank | 2,319 | 2,341 | -1% |
| Asset Management | 660 | 594 | 11% |
| Corporate & Other | 2,126 | 685 | N/M |
| Total | 9,470 | 7,781 | 22% |
Segment Analysis
Corporate Bank
In the Corporate Bank segment, net revenues were €1.84 billion in Q3 2024, down 3% from €1.89 billion in Q3 2023. The decline was attributed to normalizing deposit margins despite higher deposit volumes and increased loan net interest income.
Investment Bank
The Investment Bank segment reported net revenues of €2.52 billion, an increase of 11% compared to €2.27 billion in the same quarter last year. This growth was driven by robust performance in Fixed Income and Currencies (FIC) and Origination & Advisory (O&A) services.
Private Bank
The Private Bank generated net revenues of €2.32 billion, essentially flat year-over-year. The segment faced challenges with net interest income, which decreased by 6%, impacted by higher funding costs and minimum reserve requirements.
Asset Management
Asset Management net revenues rose to €660 million, an 11% increase from €594 million in the prior year. This growth was driven primarily by a rise in management fees.
Cost Management and Efficiency
Deutsche Bank has implemented an Operational Efficiency program aimed at reducing costs. In Q3 2024, noninterest expenses totaled €4.7 billion, a decrease from €5.2 billion in Q3 2023, largely due to a partial release of litigation provisions. The adjusted costs were €5.0 billion, consistent with the bank's guidance for 2024.
Provision for Credit Losses
Provision for credit losses in Q3 2024 amounted to €494 million, up from €245 million in Q3 2023, reflecting increased provisions for non-performing loans.
Capital Ratios
As of September 30, 2024, the Common Equity Tier 1 (CET1) capital ratio stood at 13.8%, reflecting a slight increase compared to 13.7% as of December 31, 2023.
Profitability Metrics
Deutsche Bank reported a post-tax profit of €3.1 billion for Q3 2024, significantly up from €1.7 billion in the prior year. The post-tax return on average shareholders' equity (RoE) increased to 17.3% from 9.5% year-on-year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Post-tax Profit (€ billion) | 3.1 | 1.7 |
| Return on Equity (RoE) | 17.3% | 9.5% |
| Cost/Income Ratio | 50% | 66% |
Conclusion on Revenue Growth Strategy
Deutsche Bank continues to pursue growth through its Global Hausbank strategy, targeting a compound annual revenue growth rate of 5.5% to 6.5% through 2025, while maintaining a cost/income ratio of less than 62.5%.
Deutsche Bank Aktiengesellschaft (DB) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Deutsche Bank Aktiengesellschaft (DB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Deutsche Bank Aktiengesellschaft (DB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Deutsche Bank Aktiengesellschaft (DB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.