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Deutsche Bank presents decent quarterly figures and plans to release billions more in capital
Deutsche Bank presented decent figures in the third quarter and gave an optimistic outlook for the next few years despite the IT problems at its subsidiary Postbank. Through the improved capital position, the bank wants to release billions more in capital by 2025, which increases the potential for dividend increases. This led to an increase in the share price and Deutsche Bank is at the top of the DAX. The bank made a profit of 1.03 billion euros in the third quarter, a decline of eight percent but more than analysts expected. The improved capital position allows the bank to consider further distributions to shareholders...
Deutsche Bank presents decent quarterly figures and plans to release billions more in capital
Deutsche Bank presented decent figures in the third quarter and gave an optimistic outlook for the next few years despite the IT problems at its subsidiary Postbank. Through the improved capital position, the bank wants to release billions more in capital by 2025, which increases the potential for dividend increases. This led to an increase in the share price and Deutsche Bank is at the top of the DAX.
The bank made a profit of 1.03 billion euros in the third quarter, a decline of eight percent but more than analysts expected. The improved capital position allows the bank to consider further distributions to shareholders and invest in technology, controls and the business.
Deutsche Bank plans to expand the announced share buyback from 2024, which led to a positive reaction on the stock market. The bank's shares rose by more than seven percent and significantly exceeded the value of the DAX.
However, Deutsche Bank continues to struggle with IT problems at its subsidiaries. The conversion of Postbank's information systems led to additional costs estimated at 30 to 35 million euros in the fourth quarter. At the fund subsidiary DWS, the conversion of the IT systems is also not going as planned and is becoming more expensive than expected. The additional IT setup costs amount to around 100 million euros, and the expected savings will only materialize later.
Despite these problems, analysts remain optimistic about Deutsche Bank. UBS has left the rating at “Buy” with a price target of 17.50 euros and DZ Bank rates the bank’s shares as “Buy”. The fair value of the share was even increased slightly from 12.30 to 12.50 euros.
Deutsche Bank shares have a chance to clear the 200-day moving line, which would be a positive signal for the company. However, invested investors should continue to set a stop at 7.70 euros.
According to a report by www.deraktionaer.de.
Read the source article at www.deraktionaer.de