Wednesday 23 March 2016

DB annual report 2015

DB, annual, report, 2015, front page

Deutsche bank arrived some time ago with their annual report and it was, as expected, not a report for the shareholders to be happy about. I no longer remember what happened upon the day of the release but not that long ago the share price was down around 14 € and now it is around 17 € so overall there seem to be an interest in buying DB.

The report in full you can find here and for my previous summary of the DB report Q2 2015 then please click on that link and to find out more about DB then visit DB analysis 2015 (a new one will arrive shortly).

As always when it comes to banks I look at the Cost/Income ratio. DB had for 2015 a C/I ratio of 115%. Well done guys! Most of the values in the financial statement below are ok in terms of revenue. With this I mean that they managed to increase the revenue slightly and they managed to decrease some costs such as interest expenses etc. The two elephant guns in terms of shooting big holes in the earnings are hidden behind the General and administrative expenses because there they have pushed in 5.2 billion € in litigation costs. The second gun is the impairment costs of almost 5.8 billion €. So 11 billion € in unnecessary costs booked during 2015 is hard to accept as a shareholder but that is the reality we unfortunately have to live with. Due to these two elephants we ended up with -6.8 billion € for year 2015.

DB, 2015, financial statement

Conclusion: DB had, financially, a very bad year in 2015. Still there are one thing to rejoice about and that is that the two crooks finally got kicked out and that cleaning processes have been started within the organisation. As a shareholder I am grumpy but much less so than what I was one year ago even though the share price have dropped significantly.

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