Deutsche Bank crashes: tariff threats and dividends in focus!

Deutsche Bank crashes: tariff threats and dividends in focus!

On Friday, Deutsche Bank shares experienced a sharp decline of more than four percent, placing them second to last in the DAX. This development occurred in a tense market environment that was heavily influenced by US President Donald Trump's recent tariff threats. The previous week, Trump announced 50 percent tariffs on EU goods that were originally scheduled to come into force on June 1, adding further uncertainty to markets. Loud Market screener During this time, the DAX fell by 2.5 percent to its lowest level in two weeks and the week was expected to be a loss of one and a half percent.

Deutsche Bank shares traded at a dividend discount on Friday, which may explain some of the share price decline. For the 2024 financial year, the bank is planning a dividend of 0.68 euros per share, which represents an increase of 50 percent compared to the previous year and is a sign of the recent increase in distributions. However, the pressure on the stock could also be due to the uncertainty surrounding tariffs that accompanied Trump's announcement. The shareholder points out that Deutsche Bank has already responded to the changed economic environment and has carried out internal stress tests to examine its risk positions.

Responses to tariff threats

Financial Officer James von Moltke explained at the annual general meeting that Deutsche Bank has significantly reduced its exposure to companies that could be affected by the new tariffs. An additional buffer for loan provisions was also set up last month to cushion the possible financial impact of the tariffs.

On Friday, Deutsche Bank stock traded volume exceeded its 30-day average volume, indicating increased selling pressure. Banking stocks such as Deutsche Bank and Commerzbank, which fell 3.5 percent, as well as major car manufacturers such as BMW and Volkswagen also suffered from the market movements. Selling pressure on banking, auto and technology stocks was significant and the EuroStoxx 50 fell 2.7 percent.

Outlook and long-term prospects

A certain calming of the market situation is expected at the start of the coming trading week. Despite the current turbulence, Deutsche Bank shares are viewed as promising in the long term, not least because of the attractive dividends that the bank has continuously increased in recent years. Investors are optimistic that the situation could stabilize and the market will subsequently recover.