Yield target achievable?: Deutsche Bank share increases: Analysts expect good business – chief dealmaker in New York is leaving Deutsche Bank | news

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–In terms of both pre-tax profit and the surplus, Germany’s largest financial institution should therefore have exceeded the previous year’s values ​​in the period from April up to and including June 2022. The Frankfurt DAX group will present the interim balance sheet this Wednesday (7:00 a.m.).

On average, analysts expect Deutsche Bank to have achieved a pre-tax profit of a good 1.3 billion euros in the second quarter of the current year. Interest payments to the holders of certain bonds still have to be deducted from the net profit of a good 900 million euros, so that, according to the latest market estimates published by the bank, the bottom line is a profit of almost 800 million euros. In the first three months of 2022, Deutsche Bank had achieved a surplus in the billions.

In the second quarter of 2021, the bank had reported a pre-tax profit of almost 1.2 billion euros, the bottom line was a profit of 692 million euros in the books. As of June 2021, Deutsche Bank reported its most successful half-year since 2015.

2022 is going even better so far – despite growing economic uncertainty in connection with the Russian war of aggression against Ukraine. According to analysts’ estimates, Deutsche Bank’s earnings – ie total income – were also up on the 6.2 billion euros in the same period last year at a good 6.4 billion euros in the second quarter. For the year as a whole, market observers are expecting income of a good 26 billion euros, which, despite the turn towards higher interest rates, would be at the lower end of the increase targeted by the Management Board.

In 2019, Deutsche Bank boss Christian Sewing ordered the institute to undergo a far-reaching restructuring, trimmed the in-house investment bank and initiated the reduction of thousands of jobs. The goal: to increase the return on tangible equity to eight percent by the end of 2022. By 2025 it should even be more than ten percent after taxes.

However, analysts still have doubts about whether this will succeed. In 2021 as a whole, the return was just 3.8 percent. In the first quarter of the current year, the bank achieved a return of 8.1 percent. For the second quarter as well as for the whole of 2022, the analysts expect slightly more than six percent on average. According to current estimates, they do not expect the financial institution to achieve a return of more than eight percent until 2025.

Investment banking, where the bank makes money from trading bonds and currencies, is likely to have been the main source of profits in the second quarter of the current year. Fabrizio Campelli, the board member responsible for the division, said at a conference at the end of May that he was “quite satisfied” with the course of the second quarter: “A number of trends that we observed in the first quarter are reflected in the second quarter continues – especially in trading with fixed-income securities and currencies.”

Chief Dealmaker in New York is leaving Deutsche Bank

Deutsche Bank’s top dealmaker in New York, Drew Goldman, resigns.

His duties will be replaced by regional heads of investment banking, an internal document seen by Reuters said on Monday. A spokesman for the bank confirmed the information. Goldman can look back on a 22-year career at the largest German financial institution and was most recently Global Head of Investment Banking Coverage and Advisory. Now he wants to face new challenges outside of investment banking, said Mark Fedorcik, co-head of investment banking at the institute.

Former co-head of M&A deals, Bruce Evans, will now lead the Americas investment banking coverage and advisory practice. Evans is also considered an industry veteran with 15 years of experience at Deutsche Bank. He has managed the M&A business as co-head since last year. In Europe, Berthold Frst and Henrik Johnsson are responsible for Investment Banking Coverage and Advisory. In Asia, Mayooran Elalingam is responsible for the area.

The restructuring coincides with a drastic deterioration in the business situation in the M&A business. Like many of its competitors, the German industry leader is feeling the decline in global M&A transactions. Market volatility and uncertainty caused by the war in Ukraine and interest rate hikes have derailed proposed mergers and acquisitions in recent months.

In XETRA trading, the Deutsche Bank share is temporarily up 0.86 percent at EUR 8.33.

FRANKFURT (dpa-AFX) / New York (Reuters)