Headquartered in Frankfurt, Germany, Deutsche Bank (DB)is the largest bank in Germany and one of the largest financial institutions in Europe and the world, with assets totaling €1.48 trillion as of Dec 31, 2017.
It offers a wide variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world.
The bank has following operating segments: Corporate & Investment Bank, Private & Commercial Bank, and Deutsche Asset Management.
Disappointing Fourth Quarter Results
The bank reported net loss of €2.2 billion ($2.6 billion) for Q4 2017 compared with net loss of €1.9 billion ($2.3 billion) in the same quarter a year-ago.
In addition to non-cash charge of €1.4 billion resulting from a valuation adjustment on its deferred tax assets due to the tax reform, results were impacted by double-digit revenue declines in all three of its business units.
They attributed low volatility and decline in client activity as the main reasons for revenue decline.
Falling Estimates
Germany’s flagship bank has seen a plunge in earnings estimates as a result of weak performance and continued woes.
Zacks Consensus Estimates for the current and next year EPS are now $1.30 and $1.64 respectively down from $1.41 and $1.86, just 60 days ago.
The following chart shows negative earnings and price momentum:
The Bottom Line
After strict regulatory norms imposed on big banks, they have been finding it difficult to generate profits in their investment banking and trading businesses.
Shares of this bank are down more than 28% year-to-date, but with looming CEO succesion and other uncertainties, the overall outlook for the bank remains very cloudy and it is safer to avoid the stock for the time being.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Headquartered in Frankfurt, Germany, Deutsche Bank (DB)is the largest bank in Germany and one of the largest financial institutions in Europe and the world, with assets totaling €1.48 trillion as of Dec 31, 2017.
It offers a wide variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world.
The bank has following operating segments: Corporate & Investment Bank, Private & Commercial Bank, and Deutsche Asset Management.
Disappointing Fourth Quarter Results
The bank reported net loss of €2.2 billion ($2.6 billion) for Q4 2017 compared with net loss of €1.9 billion ($2.3 billion) in the same quarter a year-ago.
In addition to non-cash charge of €1.4 billion resulting from a valuation adjustment on its deferred tax assets due to the tax reform, results were impacted by double-digit revenue declines in all three of its business units.
They attributed low volatility and decline in client activity as the main reasons for revenue decline.
Falling Estimates
Germany’s flagship bank has seen a plunge in earnings estimates as a result of weak performance and continued woes.
Zacks Consensus Estimates for the current and next year EPS are now $1.30 and $1.64 respectively down from $1.41 and $1.86, just 60 days ago.
The following chart shows negative earnings and price momentum:
The Bottom Line
After strict regulatory norms imposed on big banks, they have been finding it difficult to generate profits in their investment banking and trading businesses.
Shares of this bank are down more than 28% year-to-date, but with looming CEO succesion and other uncertainties, the overall outlook for the bank remains very cloudy and it is safer to avoid the stock for the time being.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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