The rating and outlook on Deutsche Bank reflect our view that the road to successful business model recalibration and a return to sustainable profitability is still steep.

Deutsche Bank has been operating as a global universal bank with an emphasis on wholesale and investment banking, alongside its more marginally profitable domestic retail franchise which has been weighing on the bank’s cost base.

Several top management changes, recent news regarding the US business and headline risk related to ongoing litigation cases are affecting the bank’s relationship-based businesses.

However, recent initiatives undertaken by the new top management, such as the review of the equities business and the decision to scale back the US rates business to refocus on Europe and steer the international corporate finance business towards segments more directly linked to European activities, indicate more target-oriented activity within the strategic framework.

The 2017 rights issue improved the bank’s capital position. However, weak profitability over past quarters suggests a reduced ability to pursue organic capital formation for the time being.

Download the updated rating report