Deutche seems gaining momentum. Euro data is very positive. This stock is cheap and trading at well below book value. US banks have already passed the book value for the most part, They should all trade to 1.5 to 2.5 times book value when interest rises.
DECADES OF BRAINWASHING HAS CAUSED SOME GERMANS TO VOTE FOR A WOMAN (MERKEL) WHO HATES HER FLAG AND HER COUNTRY.
Kaylee works for awesome_SUCKS, which is why she ( actually a guy named Billy ) pimps it on this site.
Let's double the dividend. This will get the stock moving for sure.
Deutsche Bank AG is making good progress with its restructuring as it approaches the halfway mark in a five-year plan and should be able to meet all strategy targets even though its financial results are still weak, according to analysts.
Germany's top lender has come under fire by some of its biggest investors who have criticized CEO John Cryan for not achieving enough with his revamp over the past two years as profitability remains low, despite the stronger capital position and reduced litigation risk, Handelsblatt reported Sept. 14.
At the beginning of March, Cryan announced several key changes in Deutsche Bank's restructuring plan including a €8 billion capital raise, which the group completed successfully a month later. The capital boost and the €7.2 billion settlement with the U.S. Department of Justice over misselling of mortgage-backed securities Deutsche Bank achieved at the end of 2016, had managed to calm investor concerns for a time. However, the poor results booked by the group over the first half of the year have made some large investors unhappy, Handelsblatt said.
"The restructuring itself is going in line with what the CEO pointed out in more recent meetings ... but profitability is still quite low and the second-quarter earnings clearly failed to meet expectations. From that standpoint it is now about earnings rather than restructuring," Heino Ruland, a strategist at Ruland Research in Germany, said in an interview.
Commenting on Deutsche Bank's progress, Cryan said at a conference in Frankfurt on Sept. 6 that over the past two years the group has demonstrated a cost discipline "no one had believed" it could. Deutsche Bank is now at a stage where it can start growing again, the CEO said, noting there is still a lot to do to complete the restructuring.
Investor frustration understandable
Further criticism, according to Handelsblatt, has come from the Qatari royal family, which is one of the two largest shareholders of Deutsche Bank with a stake of nearly 10%. While Qatar believes that Cryan is well placed as CEO for period of restructuring, it does not think he should keep the position past 2020 when his contract expires, Handelsblatt said. Although shareholder Union Investment still supports Cryan and acknowledges his contribution to stabilizing the bank, it also points out that Deutsche Bank has not proven that its business model works, according to the report.
While the investor frustration is understandable as they might expect better results, restructuring takes time and the real results can be seen only after it has been completed, Derya Guzel, an equity analyst at Morningstar, said. "[Cryan] has always voiced his commitment to the bank, he has declined a bonus. So far he has been doing things according to the book, what he needs to do ... I give him credit for that," she said.
Deutsche Bank shares have been volatile since the beginning of the year, bouncing to €20 apiece after the DoJ settlement and then dropping to as low as €13.
Next year, when it is due to complete the reintegration of Deutsche Postbank AG and also prepare the minority initial public offering of its asset management unit, will be key for Deutsche Bank, Guzel said.
"I can understand investors' concerns as there has not been much update or details from Deutsche Bank, especially concerning the IPO of Deutsche Asset Management," Firdaus Ibrahim, equity analyst with research firm CFRA, said in an emailed comment. "Pressure is also mounting on [the German group] with Barclays having completed its restructuring in July, as Deutsche Bank remains [one of] the few European banks that have yet to complete their restructuring post the financial crisis."
Good cost management, weak revenue
Looking at the timeline it has given to achieve its strategy targets, including a rundown of legacy assets by 2020, the €21 billion cost reduction target by 2021 and the minority listing of the asset management unit by the first quarter of 2019, there is still a lot of time for Deutsche Bank, Ibrahim said.
Deutsche Bank is still implementing its 2020 strategy and is on track to meet its cost savings goals. However, there are some questions on the revenue side, Michael Teig, a credit analyst with Unicredit said in an email. A consensus forecast released by Barclays Research on Sept. 15 projects a revenue decline of more than 5% for Deutsche Bank in 2017, while revenue for 2018 is expected to grow by around 3% year over year.
Deutsche Bank CFO James Von Moltke said at a fixed income investor conference call in early August that the operating environment remains as challenging as it was in the second quarter of the year. "Subdued client activity and low volatility are affecting our sales and trading units, and the persistent challenge of low interest rates continues to impact our retail and transaction banking franchises," he said.
If we are to go off the RSI then you could argue that a pull back next day or so could occur on DB before rallying up. Im not sure about you guys but Awe-Some.Sto-ck.s has provided me with some pretty good trade ideas. I messed up executing some of them but thats on me.
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