The shares from European banks are among the most popular with traders who wish to invest in the stock markets. But this is even truer for the German banking groups that enjoy a strong popularity.
We will therefore explain here how you can analyse Deutsche Bank shares.
About the Deutsche Bank group:
The Deutsche Bank Group is one of the leading banks in Germany. Its activities are divided among several sectors the primary of which is retail banking, as well as private banking and asset management, but also including investment banking, finance, stock markets and other lesser services in its global turnover.
Currently Deutsche Bank manages no less than 500 billion Euros in outstanding deposits and 370 billion Euros in outstanding loans. It counts 2,907 agencies throughout the world with the majority in Germany but also in the Middle East, Africa, America and Pacific Asia.
The major competitors of Deutsche Bank:
The Deutsche Bank banking group is one of the leaders of this sector in Germany but it is also seeking to establish its position in Europe and throughout the world. It is therefore important to take into account the national and international competition that they face in order to achieve a comprehensive and effective fundamental analysis of this company’s share price. Before starting to trade in Deutsche Bank shares online we would therefore recommend that you read this list of major national and international competitors of Deutsche Bank.
In Germany Deutsche Bank is actually the largest bank in the country, positioned just ahead of its major direct competitor Commerzbank. Then we find the Dresdner and DZ banks, then the GDR State Bank.
On the international level, the major foreign competitors of Deutsche Bank are as follows:
- BNP Paribas
- China Construction Bank Corporation
- Bank of America
- National Australia Bank
- Standard Chartered Bank
- Royal Bank of Scotland
The major partners of Deutsche Bank:
In June 2001 BNP Paribas collaborated with five of the largest global financial establishments to create the first worldwide alliance in the ATM (Automatic Teller Machine) sector, this was named ‘Global Alliance’ and included Deutsche Bank.
In 2014 the Attijariwafa Bank and Deutsche Bank proceeded with the signature of a significant memorandum agreement. This was aimed at constructing and developing a global co-branded solution to banking transactions with the emphasis placed on the respective and complementary expertise of the two banks in their respective markets.
Mastercard and Ogone, a major international online payments provider, announced their partnership in 2013 on the integration and deployment of MasterPass, considered as a major future player in digital transactions, with several large European banks including Deutsche Bank.
Rate analysis of the Deutsche Bank share price:
Deutsche Bank share prices are quoted on the Deutsche Boerse AG stock market in Germany and are integrated in the Eurostoxx 50 stock market Index.
Important stock market information about Deutsche Bank shares:
To go further and better understand the position of Deutsche Bank shares on the stock markets here is some more general supplementary information which is however important to a global understanding of its analysis.
- In 2017 the total stock market capital of the Deutsche Bank group stood at 35,186.81 million Euros.
- The share price of Deutsche Bank is currently quoted on the Prime Standard market of the Deutsche Boerse AG.
- The Deutsche Bank share price is also included in the composition of the German National stock market Index, the DAX 30.
- The shareholders of Deutsche Boerse include a 5.9% shareholding by BlackRock.
Economic and financial history of Deutsche Bank:
Here are some recent important historical dates concerning the financial and economic events that relate to the German bank Deutsche Bank and that have influenced its share price on the stock markets.
- In 2014 Deutsche Bank announced an increase in capital of 8 billion Euros.
- In 2015 the group pleads guilty in connection with the Libor manipulation scandal and pays a fine of 2.2 billion dollars. In the same year, Deutsche Bank announces its intention to withdraw from its activities in Russia and then announces a loss of 6.2 billion dollars in the third quarter as well as the reduction of 9,000 job positions due to restructuring. The group then sells its 20% shareholding in the Hua Xia Bank for 4 billion dollars.
- In 2016, the share price dropped following an announcement by the American authorities of their intention to fine the bank 14 billion dollars for its role in the subprime crisis. In the same year the group announced the sale of its insurance activities in the United Kingdom. The bonus of a quarter of the employees is reduced by 80%.
The advantages and strong points of the Deutsche Bank share price as a stock market asset:
Before taking a long term position on purchasing Deutsche Bank shares it is important to obtain a maximum of information that will indicate the future prospects for the share price. To do so a comparison between the strengths and weaknesses of this banking group is highly valuable. To assist you with this we have prepared an in depth study of the major advantages of this company.
Of course, the position of this banking group on the European banking market is the primary advantage of this company. The Deutsche Bank is currently the top European bank notably due to its solid experience in Germany which is the country with the greatest economic power in Europe. The range of solutions and services offered by Deutsche Bank have been created for all types of clients, individuals as well as corporate, with asset management contracts, banking transactional services, corporate financial services, company financing on capital markets, wealth management and of course retail banking services.
We can also appreciate the advantages provided by this company’s ability to consolidate its affairs. To strengthen its activities the group has concentrated on optimising its resources and thereby its capital. It also recently proceeded with a total reorganisation of its commercial divisions in three distinct divisions with the objective of strengthening each subsidiary and thereby optimise coverage and increase its market share.
More specifically in Germany, the Deutsche Bank group has succeeded in developing in the retail commerce sector. This was made possible notably by the integration of the Postbank company and PCB activities in the German market. Deutsche Bank has also become a leader in this area with a global efficacy based on the major benefits achieved and the global financial stability of the group.
The group has also greatly strengthened its activities in the investment bank. Deutsche Bank has in fact increased its activities related to multinationals on a worldwide level with the creation of a business and investment bank unique in its sector that is founded on the long expertise and experience of this historical bank.
Finally, we can also note the strong brand image of the Deutsche Bank Group as an undeniable advantage. In fact, in a list of 2,000 worldwide brands created by Forbes magazine in 2017 Deutsche Bank is placed at number 441. In the same year the company was valued at over 34 billion dollars with a revenue of around 44.28 billion dollars.
The disadvantages and weak points of the Deutsche Bank share price as a stock market asset:
As you have probably already surmised, the strong points of Deutsche Bank are not the only factors to take into account before implementing your investment strategy with this asset and you should therefore also know and understand the weak points of this asset. We will therefore now continue with a detailed list of the weak points of this banking group that could negatively influence the growth of its stock market value.
The major weak point of the Deutsche Bank Company concerns the changes that recently took place in the current legislation of certain favoured activity sectors of this group. These changes actually lead to a significant decrease in the activities of Deutsche Bank as well as a consolidation in its historical activities.
To conclude we note a limited opening for this group on an international level. In fact, although Deutsche Bank benefits from a strong presence in the European market, its development outside this geographical zone remains very limited. Due to this restraint the group does not have the same advantages as some of its competitors for development in the emerging markets which remain a choice target for the future of banks worldwide.
As you may notice, the weaknesses of the Deutsche Bank Group are fairly few compared to the numerous advantages it possesses. However, these weak points could seriously impair the abilities of this company to grow positively in the future and could exert a major influence on the future trends of this share price. It would therefore be prudent to reflect carefully and take these points into account.