Deutsche Bank Earnings: Revenue Guidance Increase Anticipates Rebound in Mergers and Acquisitions

Deutsche Bank reported fourth-quarter 2023 profits before tax of EUR 698 million, 10% lower than a year ago, when the bank posted an exceptionally strong quarter. Deutsche did disappoint relative to consensus estimates collected by the bank itself on revenue of EUR 6.658 billion (2% below consensus estimates) and adjusted costs of EUR 5.305 billion (3% above consensus estimates). The reasons were a still weak backdrop for the investment bank and its fixed-income trading operation as well as the asset management segment performing below expectations. We maintain our fair value estimate of EUR 13 per share and no economic moat rating.