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Here's Why Deutsche Bank Stock Is Worth Adding to Your Portfolio
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Key Takeaways
DB stock has surged 63.8% in a year, outpacing peers Barclays and UBS in performance.
Deutsche Bank posted 5.8% CAGR in net revenue, driven by capital-light units and acquisitions.
DB's 2025 EPS is projected to rise 116.2%, with analyst upgrades signaling stronger fundamentals.
Deutsche Bank AG (DB - Free Report) has shown promising momentum over the past year, supported by earnings strength and robust capital management. With a solid liquidity profile, strong revenue growth, and ongoing strategic transformation, DB merits attention for investors.
Over the last year, shares of DB have gained 63.8%, outperforming its industry’s growth of 27.2% and close peers, Barclays PLC (BCS - Free Report) and UBS Group AG (UBS - Free Report) . While shares of BCS recorded an increase of 56.6%, UBS rose 4.5% in the same period.
Price Performance
Image Source: Zacks Investment Research
What Makes DB Stock Worth Betting on
Strong Deposit Base: Deutsche Bank continues to benefit from a well-diversified and steadily expanding deposit base. Over the last three years ending 2024, deposits recorded a compound annual growth rate (CAGR) of 3.3%, reflecting stable inflows and client trust across both retail and corporate channels. As of March 31, 2025, total deposits stood at €665 billion, reflecting year-over-year growth. The stable deposit balance will strengthen the company’s balance sheet.
Steady Revenue Growth: The bank’s net revenues have witnessed a three-year (2021–2024) CAGR of 5.8%. This momentum has been fueled by the bank’s strategic focus on capital-light businesses such as its private banking, asset management, and corporate banking units. Notably, this upward trend continued into the first quarter of 2025, driven by strong net interest income and fee-based revenues. The bank is increasingly seeing stronger contributions from wealth and transition financing deals, while the acquisition of Numis in 2023 has expanded its reach in advisory and asset management. These developments reflect Deutsche Bank’s commitment to sustainable growth beyond traditional investment banking operations and are expected to aid revenues in the upcoming period.
Sales Estimates
Image Source: Zacks Investment Research
Strong Liquidity: The bank maintains a sound liquidity position, with a liquidity coverage ratio of 134% as of March 31, 2025. Its cash, central bank, and interbank balances totaled €159 billion, compared with only €15.1 billion in short-term borrowings. The bank’s strong credit standing is reinforced by long-term issuer ratings of ‘A’ from Standard & Poor’s and ‘A1’ from Moody’s. This renders the company’s favorable access to debt at attractive rates, reducing the likelihood of default on interest and debt repayments if the economic situation worsens.
Strategic Partnership and Digital Transformation: DB has embarked on a digital transformation drive, focusing on cloud migration, artificial intelligence (AI), and automation to enhance operational efficiency and client services. In May 2025, Deutsche Bank reinforced its strategic partnership with International Business Machines Corporation (IBM) through a new license agreement, gaining greater access to IBM’s advanced software solutions, including the watsonx AI portfolio, to streamline workflows, reduce costs, and enhance client services. Separately, it teamed up with Singapore-based finaXai, a Singapore-based AI company, to expand Project DAMA 2 to enhance its multi-chain asset servicing pilot using explainable AI. Additionally, in June 2024, Deutsche Bank expanded its relationship with Bitpanda to support real-time, API-based payments in Germany. These initiatives reflect the bank’s commitment to innovation and digital transformation.
Sustainable Capital Distribution Activities: The company plans to return excess capital to shareholders through dividends and share buybacks look impressive. Management continues to execute on its capital distribution strategy, which includes a €1 per share dividend and a €750 million share repurchase plan announced in January 2025. These actions support the company’s longer-term goal of distributing over €8 billion between 2022 and 2026. The combination of consistent profitability and a prudent capital buffer provides confidence in the sustainability of these returns.
Earnings Strength: Deutsche Bank has exhibited strong earnings performance over the past years. For the next three to five years, its projected earnings per share growth (EPS) of 35.8% is higher than the industry’s average of 10.2%.
The projected EPS growth of BCS is 16.7%, whereas that of UBS earnings is expected to decline by 4.8% in the same period.
Looking ahead, the bank’s earnings are projected to grow 116.2% in 2025 and 11.3% in 2026.
Earnings Estimates
Image Source: Zacks Investment Research
Favorable Valuations: DB stock looks undervalued right now with respect to its price-to-book (P/B) and price-to-earnings (P/E) (F1) ratios. It has a P/B ratio of 0.63X, lower than the industry average of 1.19X. Moreover, the company’s P/E (F1) ratio of 10.76X is below the industry average of 9.61X. The P/B and P/E (F1) ratios of BCS were 0.68X and 8.0X, whereas those of UBS were 1.17X and 17.69X, respectively.
How to Approach DB Stock Now?
Deutsche Bank’s transformation strategy includes revenue diversification and efforts to boost digital transformation look encouraging.
The strong liquidity and shareholder-friendly capital return policies further enhance its investment profile. Hence, investors can consider adding DB stock to their portfolio at the current level.
Image: Bigstock
Here's Why Deutsche Bank Stock Is Worth Adding to Your Portfolio
Key Takeaways
Deutsche Bank AG (DB - Free Report) has shown promising momentum over the past year, supported by earnings strength and robust capital management. With a solid liquidity profile, strong revenue growth, and ongoing strategic transformation, DB merits attention for investors.
Over the last year, shares of DB have gained 63.8%, outperforming its industry’s growth of 27.2% and close peers, Barclays PLC (BCS - Free Report) and UBS Group AG (UBS - Free Report) . While shares of BCS recorded an increase of 56.6%, UBS rose 4.5% in the same period.
Price Performance
Image Source: Zacks Investment Research
What Makes DB Stock Worth Betting on
Strong Deposit Base: Deutsche Bank continues to benefit from a well-diversified and steadily expanding deposit base. Over the last three years ending 2024, deposits recorded a compound annual growth rate (CAGR) of 3.3%, reflecting stable inflows and client trust across both retail and corporate channels. As of March 31, 2025, total deposits stood at €665 billion, reflecting year-over-year growth. The stable deposit balance will strengthen the company’s balance sheet.
Steady Revenue Growth: The bank’s net revenues have witnessed a three-year (2021–2024) CAGR of 5.8%. This momentum has been fueled by the bank’s strategic focus on capital-light businesses such as its private banking, asset management, and corporate banking units. Notably, this upward trend continued into the first quarter of 2025, driven by strong net interest income and fee-based revenues. The bank is increasingly seeing stronger contributions from wealth and transition financing deals, while the acquisition of Numis in 2023 has expanded its reach in advisory and asset management. These developments reflect Deutsche Bank’s commitment to sustainable growth beyond traditional investment banking operations and are expected to aid revenues in the upcoming period.
Sales Estimates
Image Source: Zacks Investment Research
Strong Liquidity: The bank maintains a sound liquidity position, with a liquidity coverage ratio of 134% as of March 31, 2025. Its cash, central bank, and interbank balances totaled €159 billion, compared with only €15.1 billion in short-term borrowings. The bank’s strong credit standing is reinforced by long-term issuer ratings of ‘A’ from Standard & Poor’s and ‘A1’ from Moody’s. This renders the company’s favorable access to debt at attractive rates, reducing the likelihood of default on interest and debt repayments if the economic situation worsens.
Strategic Partnership and Digital Transformation: DB has embarked on a digital transformation drive, focusing on cloud migration, artificial intelligence (AI), and automation to enhance operational efficiency and client services. In May 2025, Deutsche Bank reinforced its strategic partnership with International Business Machines Corporation (IBM) through a new license agreement, gaining greater access to IBM’s advanced software solutions, including the watsonx AI portfolio, to streamline workflows, reduce costs, and enhance client services. Separately, it teamed up with Singapore-based finaXai, a Singapore-based AI company, to expand Project DAMA 2 to enhance its multi-chain asset servicing pilot using explainable AI. Additionally, in June 2024, Deutsche Bank expanded its relationship with Bitpanda to support real-time, API-based payments in Germany. These initiatives reflect the bank’s commitment to innovation and digital transformation.
Sustainable Capital Distribution Activities: The company plans to return excess capital to shareholders through dividends and share buybacks look impressive. Management continues to execute on its capital distribution strategy, which includes a €1 per share dividend and a €750 million share repurchase plan announced in January 2025. These actions support the company’s longer-term goal of distributing over €8 billion between 2022 and 2026. The combination of consistent profitability and a prudent capital buffer provides confidence in the sustainability of these returns.
Earnings Strength: Deutsche Bank has exhibited strong earnings performance over the past years. For the next three to five years, its projected earnings per share growth (EPS) of 35.8% is higher than the industry’s average of 10.2%.
The projected EPS growth of BCS is 16.7%, whereas that of UBS earnings is expected to decline by 4.8% in the same period.
Looking ahead, the bank’s earnings are projected to grow 116.2% in 2025 and 11.3% in 2026.
Earnings Estimates
Image Source: Zacks Investment Research
Favorable Valuations: DB stock looks undervalued right now with respect to its price-to-book (P/B) and price-to-earnings (P/E) (F1) ratios. It has a P/B ratio of 0.63X, lower than the industry average of 1.19X. Moreover, the company’s P/E (F1) ratio of 10.76X is below the industry average of 9.61X. The P/B and P/E (F1) ratios of BCS were 0.68X and 8.0X, whereas those of UBS were 1.17X and 17.69X, respectively.
How to Approach DB Stock Now?
Deutsche Bank’s transformation strategy includes revenue diversification and efforts to boost digital transformation look encouraging.
The strong liquidity and shareholder-friendly capital return policies further enhance its investment profile. Hence, investors can consider adding DB stock to their portfolio at the current level.
The bank currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.