Will Deutsche Bank be next? [Closer to the Exchange]

UBS's controversial takeover of Credit Suisse has fueled fears of possible problems for European banks. Analysts' eyes turned almost immediately to Deutsche Bank, which is now a shadow of its pre-financial crisis self. In 2007, for one share of the pearl in the crown of German banking, even over EUR 150 was paid. Will Deutsche Bank face a similar fate to Credit Suisse?

The possible merger of Deutsche Bank with another German lender, Commerzbank, was discussed as early as March 2019, but only a few weeks later - the talks broke off. Christian Sewing, who a year earlier sat on the chair of the CEO of the struggling Deutsche Bank, decided to radically restructure, as a result of which the employment was reduced by over a fifth and the bank's operations were switched from trading in shares to transactional banking. The accompanying removal of toxic assets from DB's balance sheet slowly but steadily began to bear fruit.

Currently, Deutsche Bank has recorded a net profit for ten quarters in a row, which in 2022 exceeded USD 5,4 billion. This is an increase of 159% compared to the previous year. The solvency measure of the CET1 bank at the end of last year was 13,4%, while the liquidity coverage ratio was at the level of 142%. According to XTB analyst Maciej Kietliński, these numbers do not indicate that there are reasons to worry about the solvency or insufficient liquidity of the German bank.

There was also considerable optimism in the Polish banking sector, which ended Tuesday's session with an increase of just over 1,9%. A well-known stock market saying says that there is no boom without banks So what can we expect from the WIG in the coming months?

We invite you to the webinar Closer to the Stock Exchange, in which, after the acquisition of Credit Suisse, we ask the question - will Deutsche Bank be next? As usual, XTB analyst Maciej Kietliński answers these and other questions.

In the latest webinar:

• What is the current situation of Deutsche Bank?
• What does the LEI index say about the US market?
• What's next with WEDGE?

About the host

Maciej Kietlinski - professionally involved in the analysis of capital markets since 2017. He gained the necessary experience in such renowned companies as BGŻ BNP Paribas or Noble Securities. In his last place of work, he specialized in the analysis of listed companies from the dynamically developing gaming sector. He also gave stock exchange comments on TV Biznes24, Parkiet.tv or Inwestorzy.tv and for Forbes, Reuters, Parkiet, Gazeta Wyborcza and PAP Biznes. Kietliński also focuses on development, which is why he is currently working on a doctoral dissertation in economics at the Warsaw School of Economics. CIIA, Investment Advisor or Stock Broker.

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