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Christian sewing believes that “the ability to predict and consider” is very important for Deutsche Bank. The CEO of the German Bank is not a mistake. Over the past fifteen years, the only thing that is consistent in Deutsche was his ability to move on all the fire that you faced. but Annual disappointing results It indicates the remains of anxiety on the hidden garden tools.
The sew Deutsche After decades of excessive excess and mismanagement left it fighting for survival. Its shares have almost increased since its low points in 2020. But the income statement on Thursday is the most prominent issues related to prediction that help explain the continuous evaluation discount compared to their peers.
On the cost front, the expenses were weighted once, including litigation on profits, which decreased by 92 percent in the fourth quarter. The bank also managed the cost of 2025. Meanwhile, the most prominent income side, how to rely on Deutsche on potentially volatile business.
Nearly a third of Deutsche's revenue comes from its fixed income and currencies section, known as FIC. This work works well. The market fluctuations helped fuel the demand. Between the new Trump regime in the United States, the UK government facing budget pressure and imminent public elections in Germany, there should be a lot of uncertainty to maintain its momentum in 2025.
Nevertheless, investors tend to give limited credit only for trading income – who fear it cannot be predicted and requires more capital compared to wealth management.
In fact, Deutsche's dependence on trading helps explain the reason for its continued failure of most of his European competitors to evaluate a tangible book 0.6 times. UBS, with the huge wealth management arm, the package leads at 1.5 times.
Deutsche may have abandoned her efforts to be “Goldman Sachs in Europe.” But in this regard, it has a problem similar to its opponent in the United States for once. Make excessive dependence on Goldman on FCCC-with C Setra Calemits- difficult to fill a gap in evaluation with Morgan Stanley, which has great wealth works, and JPMorgan, retail bank integrated services.
Goldman follows a dual approach, in an attempt to build alternative revenue sources while persuading investors that trading is not exactly volatility as they are afraid. Deutsche performs the same thing, highlighting the FIC revenue share that comes from credit extension to customers, or “financing” that investors see more stable.
Sewing said on Thursday that the year 2025 will be the “Deutsche” account, when the bank will be judged at this stage of its efforts. But it will take more than one year before investors can believe that the bank has already been predicted.
