Deutsche Bank: Doubts about the goal

Last week Deutsche Bank held a capital market day. The ROTE target of 8 percent for 2022 is confirmed. The bank slightly reduces the sales and cost expectations.

Good progress was made in terms of costs in 2020, and sales were a positive surprise. However, it is unclear how sustainable the strong development in investment banking is. The bank believes that this rate is 50 percent. Pareto Securities analysts have some doubts as to whether this is a realistic figure. You consider the ROTE target to be unreachable. It must also be taken into account that interest rates will remain low. This will put a strain on many business areas.

The analysts consider the bank’s shares to be fairly valued at the current level. You therefore confirm the hold recommendation for the shares of Deutsche Bank. The price target remains at EUR 8.00.

The shares of Deutsche Bank gain 1.2 percent in the morning to 8.921 euros.


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