Topic: How To Invest

Q: Hi Pat: What do you think about Deutsche Bank. When is the right time to buy? Also, I do not understand the rights issue it is offering. Are the rights separate shares? Thank you very much for your insights.

Article Excerpt

A: Deutsche Bank AG (ADR), $18.52, symbol DB on New York (ADRs outstanding: 2.1 billion; Market cap: $35.1 billion; www.db.com), is a German global banking and financial services company with its headquarters in Frankfurt. Deutsche Bank has been among the worst performers in the European banking industry. The bank reported a 1.4 billion euro loss in 2016 ($1.97 billion Cdn.). Revenue fell 9%. Slow economic growth in Europe and elsewhere, along with all-time-low interest rates, continues to hurt the bank’s lending. Stricter regulations have also added to the bank’s legal and compliance costs. That puts additional pressure on its profits. All four of Deutsche Bank’s business divisions have suffered from revenue declines. Its investment bank and securities-trading division are struggling to maintain market share as all European investment banks suffer under the current political and economic turmoil; they also face stronger competition from U.S. rivals. Investors in Deutsche Bank have long expressed frustration with management delays in cutting costs, most of which relate…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.