Independent Insight Provider

Hao Wang, CFA

Equity Bottom-Up

Deutsche Bank, being the largest bank in Germany, has seen its share price halved from 22.8 at the start of the year to the recent low of 11.2. Despite its stock trading at only 0.26X book value, I see more downside risk if not a total collapse of the bank, which will bring another financial system melt-down on the global scale. Given the broad coverage on this bank, I will only focus on key structural issues faced by Deutsche Bank while things may well get wildly out of control because the uttermost important foundation for a banking model to sustain is confidence, which is shaking among both its depositors, peers and customers.

Deutsche Bank, being the largest bank in Germany, has seen its share price halved from 22.8 at the start of the year to the recent low of 11.2. Despite its stock trading at only 0.26X book value, I see more downside risk if not a total collapse of the bank, which will bring another financial system melt-down on the global scale. Given the broad coverage on this bank, I will only focus on key structural issues faced by Deutsche Bank while things may well get wildly out of control because the uttermost important foundation for a banking model to sustain is confidence, which is shaking among both its depositors, peers and customers.  

Deutsche Bank

Deutsche Bank, Another Lehman Brothers?