As part of the investment banking expansion strategy, Deutsche Bank DB is making efforts to strengthen its fixed-income trading business in the Americas. This was reported by the Financial Times.
Ram Nayak, investment banking co-head of DB, aims to boost fixed-income revenues by 20% from 2023 to 2027. Nayak stated that this initiative aligns with the bank’s strategic shift toward growing in “the hardest market in the world, which is the Americas."
Nayak highlighted that Deutsche Bank has made significant progress in Asia and Europe, positioning itself as the top three banks in both regions. However, DB’s performance in the Americas lags. Nayak said, "We fixed Asia, and we're a top three player. We fixed Europe, and we're a top-three player. It's America where we're lagging."
Deutsche Bank's investment bank accounted for 33.8% of the bank's total net revenues in the first nine months of 2024, with Fixed Income, Currency (FIC) Sales & Trading contributing more than 80% of the division's revenues as of Sept. 30, 2024. FIC Sales & Trading remains the primary revenue driver for the investment banking division. Deutsche Bank's FIC Sales & Trading has witnessed a compound annual growth rate of 4.1%, with the uptrend continuing in the first nine months of 2024.
The bank’s long-term goal is to be in the list of top five banks in the United States, aligning its status with its success in other global markets. To achieve this target, the bank has been restructuring its investment banking operations since 2019.
Deutsche Bank’s Zacks Rank & Price Performance
Over the past year, DB shares have gained 26% on the NYSE compared with the industry’s growth of 12.6%.
Image Source: Zacks Investment Research
Currently, Deutsche Bank carries a Zacks Rank #4 (Sell).
Foreign Banks to Consider
Some better-ranked stocks from the banking space are NatWest Group plc NWG and HSBC Holdings plc HSBC.
Earnings estimates for NWG for the current year have remained unchanged over the past seven days. The company’s shares have gained 19.2% in the past six months. At present, NWG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for HSBC’s current-year earnings have remained unchanged over the past seven days. The company’s shares have risen 10.9% in the past six months. Currently, HSBC carries a Zacks Rank #2 (Buy).
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Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
NatWest Group plc (NWG) : Free Stock Analysis Report
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