We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Deutsche Bank (DB) Mulls Selling Leasing Unit Amid Overhaul
Read MoreHide Full Article
Continuing with its plans of focusing more on the profitable divisions, Deutsche Bank (DB - Free Report) is contemplating divesting its leasing unit, Postbank Leasing GmbH. The news was reported by Bloomberg, citing people with knowledge of the matter, who asked not to be identified as the matter is private.
The bank has not yet made any final decision. In fact, it still has the option to reverse its decision and keep the unit. A Deutsche Bank spokesman declined to comment.
Notably, under the leadership of CEO Christian Sewing, the bank is on track to achieve its overhaul plan of getting rid of the units that do not meet internal profitability benchmarks as an effort to revive overall profits.
In September 2019, Deutsche Bank auctioned portfolios of equity derivatives after dividing the same into three groups — European, Asian and U.S. books. Through this, the bank made progress in exiting its equities-trading business, with a view to counter rising costs and falling bottom line.
The European assets were acquired by Barclays Plc (BCS - Free Report) , whereas Goldman Sachs (GS - Free Report) placed the winning bid for Asia equity assets. Morgan Stanley (MS - Free Report) purchased the U.S. trades.
Further, in November 2019, Deutsche Bank came up with the sale of unwanted assets worth $50 billion to Goldman Sachs as part of an overhaul of the emerging-market debt holdings.
Also, recently, Deutsche Bank was planning to restructure its fixed-income trading products in an effort to recede costs without forgoing revenues from its biggest source of income.
Notably, the bank’s continued efforts to reduce costs have been bearing fruits. Adjusted costs (excluding litigation, impairments, policyholder benefits and claims, and restructuring and severance expenses) have declined, witnessing a compound annual growth rate of 7.8% over the last five years (ended 2020), with the trend continuing in the first quarter of 2021. In fact, Deutsche Bank targets to reduce adjusted costs to €16.7 billion by 2022-end.
Though management expects higher regulatory compliance costs in the upcoming quarters, it remains committed to counterbalancing the impact through cost-saving measures.
So far this year, shares of the company have gained 31.1% on the NYSE compared with the industry’s growth of 17.6%.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Deutsche Bank (DB) Mulls Selling Leasing Unit Amid Overhaul
Continuing with its plans of focusing more on the profitable divisions, Deutsche Bank (DB - Free Report) is contemplating divesting its leasing unit, Postbank Leasing GmbH. The news was reported by Bloomberg, citing people with knowledge of the matter, who asked not to be identified as the matter is private.
The bank has not yet made any final decision. In fact, it still has the option to reverse its decision and keep the unit. A Deutsche Bank spokesman declined to comment.
Notably, under the leadership of CEO Christian Sewing, the bank is on track to achieve its overhaul plan of getting rid of the units that do not meet internal profitability benchmarks as an effort to revive overall profits.
In September 2019, Deutsche Bank auctioned portfolios of equity derivatives after dividing the same into three groups — European, Asian and U.S. books. Through this, the bank made progress in exiting its equities-trading business, with a view to counter rising costs and falling bottom line.
The European assets were acquired by Barclays Plc (BCS - Free Report) , whereas Goldman Sachs (GS - Free Report) placed the winning bid for Asia equity assets. Morgan Stanley (MS - Free Report) purchased the U.S. trades.
Further, in November 2019, Deutsche Bank came up with the sale of unwanted assets worth $50 billion to Goldman Sachs as part of an overhaul of the emerging-market debt holdings.
Also, recently, Deutsche Bank was planning to restructure its fixed-income trading products in an effort to recede costs without forgoing revenues from its biggest source of income.
Notably, the bank’s continued efforts to reduce costs have been bearing fruits. Adjusted costs (excluding litigation, impairments, policyholder benefits and claims, and restructuring and severance expenses) have declined, witnessing a compound annual growth rate of 7.8% over the last five years (ended 2020), with the trend continuing in the first quarter of 2021. In fact, Deutsche Bank targets to reduce adjusted costs to €16.7 billion by 2022-end.
Though management expects higher regulatory compliance costs in the upcoming quarters, it remains committed to counterbalancing the impact through cost-saving measures.
So far this year, shares of the company have gained 31.1% on the NYSE compared with the industry’s growth of 17.6%.
Currently, Deutsche Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>