Deutsche Bank Financial Analysis

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2. Financial Analysis of Deutsche Bank 2.1. Specification of the Purpose of the Analysis The purpose of this analysis is to assist interested stakeholders to make sound decision-making on investment, objectives and overall strategies with regard to the financial analysis. The data presented in this report even though is past may assist stakeholders to distinguish the operational strengths and weaknesses of the Bank as well as its financial soundness. 2.2 The Interested Stakeholders of the Analysis Report Management: Management of the Bank will need the financial analysis report to ascertain the financial performance and position of the Bank at a given period, as well as making strategic decisions for the sustainability of the Bank in the future.…show more content…
2.3. Deutsche Bank’s Business Overview Deutsche Bank (DB) was founded in 1870 on the basis of foreign trade. With the opening of three international branches in Japan, China and the United Kingdom within three years after initial operations. The bank had funded a number of large-scale industrial projects such as the Germany’s electrical engineering industry and the building of the Baghdad Railway from 1903 to 1940. The bank was challenged by inflation, war and other global crisis in the first half of the twentieth century, which saw the bank taking advantage in consolidating and entering many mergers and acquisitions, and expanding its empire, with a recent purchase of Postbank and Xchanging Transaction Bank (XTB). The Bank’s share was listed on the London Stock Exchange (LSE) from 1976 until 2006 (Deutsche Bank, n. d). 2.4. Strategic Review of Deutsche Bank Core Competencies, Market Context and related…show more content…
The Bank’s medium-term financial objectives is to increase its leverage ratio up to 5%, Cost and income ratio of about 65%, post-tax return on its tangible equity of over 10%, and shareholders payout of about 50%, while stabilizing the Capital Requirement Regulation introduced in the Basel 3 Common Equity Tier 1 ratio at about 11%. The overall objective of the Bank’s strategy till 2020 is to give value to stakeholders, be well capitalized and less leveraged, operate in a cost-efficient manner and with resilient corporate governance and with solid systems and controls (Deutsche Bank,

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