Deutsche Bank AG (FRA:DBK) received a €27.00 ($30.34) price objective from investment analysts at Independent Research GmbH in a research report issued to clients and investors on Thursday, Analyst Ratings Network.com reports.
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Excluding the impact of the impairment of goodwill and intangibles, thethird quarter IBIT loss would be approximately Euro 0.2 billion and the netloss would be approximately Euro 0.4 billion, largely reflecting thelitigation provisions and Hua Xia impairment. It expects this write down alone to amount to €598m.
Basel III requirements have made the stake too costly for Deutsche Bank to retain and selling will free up capital and boost Deutsche Banks return on equity, Massachusetts said.
The bank’s statement blamed a writedown on the value of its investment banking division for the bulk of the vast sum.
Analysts said markets recognised that the new boss was taking action to tackle long-standing problems – and it seemed unlikely the bank would have to raise capital soon.
The investment and retail bank is mired in around 6,000 different litigation cases and was fined in May a record $2.5 billion for its involvement in rigging interest rates.
Deutsche Bank has warned it will post a net loss of £4.5bn in the third quarter of this year, and said it could cut its dividend. Mr. Peace this month upgraded his rating of Deutsche Bank shares to buy from hold, citing increased confidence in cost-cutting plans. Several of the biggest, including Deutsche Bank, have appointed new chief executives this year and are expected to roll out stark changes from predecessors’ displays of global ambition in recent years. It may also scrap a dividend which has been there since the postwar reconstruction in Germany, as he is making an effort fix the firms performance without asking the shareholders to inject additional capital.
Deutsche Bank is due to publish its third quarter results on October 29. Deutsche Bank now plans to spin off Postbank branches.
‘The write-downs and dividend recommendation that we announced today will, of course, have to be factored in a few way into our upcoming decisions on variable compensation for the year. That was the deal, after all, that turbocharged Deutsche Bank’s transformation from a relatively staid German corporate lender into a bond and commodities trading behemoth.
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The impairment of goodwill and intangibles and of the Hua Xia investmentwill have no significant impact on Deutsche Bank’s regulatory capitalratios.
