Skip to Content

Deutsche Bank AG DB

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Deutsche Bank Gets Bruised in European Stress Test

Niklas Kammer, CFA Equity Analyst

Analyst Note

| Niklas Kammer, CFA |

Deutsche Bank has shown the weakest performance of all 18 banks under our coverage that participated in the 2021 European Central Bank stress test. In the adverse scenario, its common equity Tier 1 ratio dropped from 13.6% at the end of 2020 to 7.4% in 2023. In this scenario, Deutsche Bank would have breached its minimum capital requirements of 10.4% by a hefty 3 percentage points. From a regulatory standpoint, this is still fine. Deutsche would have to prepare a plan on how to rebuild its capital base and would not be allowed to pay any dividends or bonuses until it does. We doubt the market would allow Deutsche to fall this far, however. We expect that Deutsche would raise capital well in advance of any material shortcoming relative to its minimum requirements to avoid a downward spiral hurting its credibility in debt and equity markets, which can be a bank's death knell. We think Deutsche’s performance is also little surprising. The bank is in full restructuring mode, trying to rebuild its income streams and working toward a leaner cost base, both operationally as well as from a capital perspective. As Deutsche is yet to achieve meaningful and sustainable profitability, organic capital generation will remain weak. We maintain our EUR 10.30 fair value estimate and no-moat rating.

Read Full Analysis

Company Profile

Business Description

In July 2019, Deutsche Bank announced another restructuring plan hoping to revitalize revenue, reduce costs, and return to profitability. The largest moving pieces of the new plan is the full exit of global equity sales & trading, the scaling back of its fixed income business, as well as 18,000 FTE reductions until 2022. The remaining core business segments include private banking, corporate banking, asset management, and investment banking.

Taunusanlage 12
Frankfurt am Main, HE, 60325, Germany
T +49 6991000
Sector Financial Services
Industry Banks - Regional
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 83,797


Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.