Deutsche Bank reported a good first quarter. Profit before tax rose 10% to EUR 2 billion, while return on average tangible equity came in at 8.7%. The cost/income ratio improved to 68% from 71% last year. The improved efficiency was due to good revenue retention and cost improvements. We maintain our EUR 13 per share fair value estimate and no-moat rating.
After years of declining revenue but sticky costs, Deutsche is on track to improve its cost efficiency.
Strength in investment banking could rekindle ambitions to target a global top-tier spot in this business, a position which has brought DBK into disarray in the past.
|
Metric
|
DBK
|
C
|
GS
|
|---|---|---|---|
Price/Earnings (Normalized) | 4.71 | 11.99 | 17.57 |
Price/Book Value | 0.45 | 0.62 | 1.36 |
Price/Sales | 1.00 | 1.51 | 3.03 |
Price/Cash Flow | 2.75 | 4.62 | 9.76 |
|
Metric
|
DBK
|
C
|
GS
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
DBK
|
C
|
GS
|
|---|---|---|---|
Return on Assets (Normalized) | 0.59% | 0.41% | 0.74% |
Return on Equity (Normalized) | 12.26% | 5.31% | 11.39% |
Return on Invested Capital (Normalized) | — | — | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BNPQY
| BNP Paribas ADR | Vzndqxhr | Yzwb | $81.5 Bil | |
ISNPY
| Intesa Sanpaolo ADR | Pqbsjvtq | Clvr | $68.7 Bil | |
USB
| U.S. Bancorp | Dkfcgvybj | Hznld | $64.1 Bil | |
PNC
| PNC Financial Services Group Inc | Tdkpgncxs | Hlhjsny | $61.3 Bil | |
ITUB
| Itau Unibanco Holding SA ADR | Wrmzxhqzw | Lsnb | $55.3 Bil | |
TFC
| Truist Financial Corp | Lxvnyql | Trcrqnf | $50.9 Bil | |
MFG
| Mizuho Financial Group Inc ADR | Sswscts | Btdsr | $48.5 Bil | |
LYG
| Lloyds Banking Group PLC ADR | Ysvvtnc | Xtfjh | $41.2 Bil | |
NWG
| NatWest Group PLC ADR | Qpfhw | Ygtd | $33.2 Bil | |
DB
| Deutsche Bank AG | Jlbf | Wykf | $32.0 Bil |
