Deutsche Bank: how sustainable is development?

Tomorrow, Thursday, after the general meeting of Deutsche Bank, Paul Achleitner will no longer be the head of the supervisory board. His promoted Christian Sewing has been in charge since 2018. The bank is making a profit again, but now it is gradually being decided how sustainable it is.

Sew has sold or closed a non-profit part of the investment banking business and initiated changes in the IT field. In addition, the compliance unit has been strengthened, even if the group has not yet reached its goal. After a two-year break, at least one dividend must be paid again.

But analysts ’consensus still doesn’t buy the target by the end of the year to an eight percent return on equity. However, the expert average is now 6.5 percent, so it has risen even more recently. However, the bank also earned a significant portion of its profits in investment banking last quarter.

Many investors now want to make sure the group can do it over time. Despite inflationary pressures and the economic slowdown caused by the war in Ukraine. Compared to Handelsblatt Andreas Thomae, a major shareholder in Deka Investments, said: “Management must now be able to achieve high levels of profitability on a permanent basis.”

Deutsche Bank has undergone an impressive restructuring. However, the overall economic environment has now deteriorated sharply and management is unable to do so. It remains to be seen what emphasis Achleitner’s successor will place on.

Deutsche Bank
(WKN: 514000)

In recent days, the stock has benefited disproportionately from the growing market as a whole. However, the ten-euro threshold is not yet reached. Investors can legitimately expect rising interest rates to turn around. But the risks remain.

t3n - Digital Pioneers | Digital Business Journal

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