Deutsche Bank arrived with their Q3 report and the stock market started selling. The shares decreased and were as far down as around -1.5% during the day, a day that were otherwise mainly upbeat.
For the full report from DB please go here for the previous report by me please see Deutsche Bank (DB) report Q2 2014.
Below is an extraction of their at a glance representation of DB. The wonderful C/I ratio that in good banks can be as low as around 50% are here still well above 80% and even worse it increased to 85% this last quarter.
Interestingly they have now finally started to decrease the amount of branches as well as employees. i guess the only pity is that they fire the people down on the ground doing the hard work and the investment prima donnas that have caused all the litigation problems that DB is having at the moment are most likely kept to cause even more havoc in the future.
In the income statement we see that the revenue keeps dropping down and down for each year and each quarter and from a shareholders point of view the revenue keep dropping much faster and to a much larger extent than what the costs are doing. It is good that they make sure to keep up the costs because we would not want to see an improved C/I ratio any time soon... The earnings for the quarter was negative and the profit for the running year is at 1.2 billion € but these kind of things are very flexible with banks. For comparison they reported a profit of 2 billion € in Q3 2013 and for the full year 2013 they closed the books with a profit of 0.67 billion €. So give or take a couple of billions in either direction is nothing strange for DB and their current audit company KPMG.
Looking closer at the segments we see that once again the none core business was again the bad boy and it is those guys over there that are the guilty ones for DB running so poorly! This of course means that we good guys over here should still get our compensation, which by the look of things in the table above, still represents as much as the fixed salaries does.
As a final note...
That statement tells all one needs to know about the level of dishonesty that DB are showing and keep sticking to due to the current managers. There has been no wake up call and DB have definitely not decided to take responsibility for the crimes they have made. They will simply pay to keep things silent. Crooks! This is not in the long term interest of the shareholders and purely in the interest of the bank managers.
Conclusion: The low competent managers with zero backbone keep running DB along the same line as before. I heard a funny, as in hahaha funny, interview with a professor in economy claiming that DB would soon see the light in the end of the tunnel. Why I wondered? They have not kicked out enough of the criminal employees or even decided to take responsibility for what they have doen in the past which means that new litigation and and new crimes are currently being committed so that the employees can receive their bonus and compensations. To start fresh the correct heads must roll and they must roll in plenty. Everyone is exchangeable. For whatever reason this report made me even grumpier than what I normally get. I will not sell my shares but I am a very unhappy as a shareholder today.
If you want to find out more about DB then please see analysis of DB 2014.
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