Deutsche Bank: Profits Could Expand To 7-8 Billion By 2025

Cavenagh Research
9.48K Followers

Summary

  • Deutsche Bank closed 2022 with EUR 5.7 billion of profits, the highest level of earnings since 2007.
  • Deutsche Bank has also voiced confidence going into 2023, expecting revenue growth, while credit losses and OPEX are expected to remain flat as compared to 2022.
  • On the backdrop of increasing interest rates, I believe profits could expand to somewhere between EUR 7 billion and 8 billion within the next 3 years.
  • Reflecting on a higher yield environment for all asset classes, I upgrade my EPS expectations for DB through 2025.

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Thesis

I have previously argued that Deutsche Bank (NYSE:DB) stock could triple by 2025 ($12/share reference). And reflecting on the bank's exceptionally strong Q4 results, I am confident to reiterate my bullish thesis. Investors should consider that

This article was written by

9.48K Followers
Experience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Market). Ex-colleague and close friend of Investor Express.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DB, SCGLF, BCS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

not financial advise

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