RegionsEEAReport claims Deutsche Bank missing key targets

Report claims Deutsche Bank missing key targets

Data from S&P Global Market Intelligence suggest that the German lender is struggling to meet capital and earnings figures.

As rumours of possible German state intervention persist, Deutsche Bank is struggling to meet its capital and earnings targets according to figures from S&P Global Market Intelligence.

Prompted by the US Department of Justice demanding US$14bn to settle legal action over mortgage securities, market concern over Deutsche Bank’s capital and earnings has spilled over into rumours about a state-led rescue. The bank and the German government have issued several rounds of denials, the latest after German daily Die Zeit claimed on 28 September that work was underway on a rescue plan that potentially includes fresh capital for the bank.

Despite the denials, S&P says that Deutsche Bank is struggling and the bank’s results for the past several years show weakening equity, high leverage and a poor earnings record, while the gap between recent performance and the actual targets looks considerable.

S&P also notes that consensus estimates for the full year 2017 suggest that Deutsche Bank’s common equity Tier 1 ratio will come close to its 2018 target thanks in part to a reduction in risk-weighted assets, but they foresee weak returns around 4% – and downgrades cannot be ruled out. The bank’s shares have more than halved in value so far this year, and its market capitalisation has fallen below €15bn.

Related Articles

Brexit: Treasurers advised to activate hard Brexit plans

Banking Risk Management Brexit: Treasurers advised to activate hard Brexit plans

3d Nash Riggins
What factors are reshaping global payments?

Cash Management What factors are reshaping global payments?

1w Michael McCaw
One year of Open Banking: lessons from ‘re-regulation’ in telecoms and energy

Open Banking One year of Open Banking: lessons from ‘re-regulation’ in telecoms and energy

2w Lu Zurawski
All change: the state of today’s banking market

Banking All change: the state of today’s banking market

1m The Global Treasurer
How banks are preparing (or not) for T2/T2S consolidation

Banking How banks are preparing (or not) for T2/T2S consolidation

2m Mario Mendia
Driving digital transformation: what does the future hold for transaction banking?

Banking Driving digital transformation: what does the future hold for transaction banking?

2m The Global Treasurer
Webinar: CGI & The Global Treasurer’s Transaction Banking Survey 2018

Banking Webinar: CGI & The Global Treasurer’s Transaction Banking Survey 2018

2m Jerry Norton
BoA Merrill Lynch adds data analytics to foreign exchange payments platform

Banking BoA Merrill Lynch adds data analytics to foreign exchange payments platform

3m The Global Treasurer