Deutsche Bank Plunges Into Red For 2017 After Dilution, Revenue Warning

Tyler Durden's picture

After raising capital at a 35% discount over the weekend, Deutsche Bank shares are tumbling once again - back into the red for 2017 - after CEO John Cryan warned that revenue would be "broadly flat" in 2017. As Bloomberg reports,

Germany’s biggest bank has seen revenue falling or little changed from last year across most of its businesses. For the full year, the lender expects revenue to be “broadly flat,” it said in its annual report published Monday.


While an economic recovery in Europe, expectations for fiscal stimulus in the U.S. and rising interest rates should bolster the bank, “2017 will remain a year of change,” Cryan said in the report.




In a prospectus for the offering, also published Monday, the bank said “segmental revenues” through mid-March are “slightly lower” than in the comparable period last year. Revenue was flat in equities sales and trading, while debt sales and trading as well as corporate finance are up from a year earlier, though by a smaller margin than in the first two months. Revenue in the private wealth and commercial clients unit is flat in the first two months of the year, and global transaction banking declined.

And the "cautious" outlook is not appreciated by shareholders...

Deutsche Bank said earlier this month that the new phase of its overhaul will cause the loss of additional jobs, without specifying how many. That comes after an announcement in 2015 that it would eliminate about 9,000 jobs by the end of 2018 to cut costs.

“Our progress should become even more visible once we resolve outstanding litigation matters, modernize our technology and further strengthen our controls,” Cryan said in a letter to shareholders. “This will entail additional restructuring expenses.”

Judging by the stock's recent collapse - there's more work to be done.

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crakerman's picture

Dilution, what Dilution?

GUS100CORRINA's picture

What an UNGLY looking stock chart!!

However, we know the chant: BUY, BUY, BUY no matter what the fundamentals or charts look like.

The Management's picture

Its funny! The branding and history of the bank dictate that it can not simply be allowed to fail. It will be kept alive at any cost.

mtl4's picture

This bank's stock is a guaranteed dirt torpedo, great for oversold bounces off the bottom on the way down but just don't get caught holding the bag when it waterfalls to zero.

just the tip's picture

there is nothing wrong with the chart.  it's obviously your outdated software.  download the DB correction factor software app today.  and get started fucking the little guy yourself.

Raffie's picture

They will bounce the stock back in the $20 range again where it has been since early 2016.

Already it is going back to where it fell from.

18.49 @ 9:30am
18.82 @ 11:30am
You can't keep a good scam down.


Darktarra's picture

How long will this German money laundering scheme be allow to continue; with the said, the same question can be asked about the U.S. version of the same thing with regards to the Treasury! 

Yen Cross's picture

 Good Riddance<

Coldfire's picture

Deutsche Bank has delusions of solvency. Keep swingin' boys...

small axe's picture

any more "progress" like this and DB will be floating belly up in the Rhine. Can we please get back to business on the march to a single digit price now?

Ban KKiller's picture

"Litigation"....aka, bank attorneys are far, far from the brightest. They do lie well, forge documents well and lie in court very well. If you call that bright? Everytime they go into court they face unintended consequences from their last set of lies. The longer they fight the worse it becomes for them. Look at their history of litigation. They spend millions.....losing.

Rainman's picture

Who wouldn't want to buy stawk in a bank with a derivatives book 9x their tangible net worth ? ..tick, tock ..

A. Boaty's picture

Don't worry. They have it all perfectly hedged.

SoDamnMad's picture

Loss of jobs.  So when I go in to talk about a business I have employing 500 people and a large capital turnover at Deutsche Bank I have to wait at the end of the line of 23 people ahead of me?

Mahatma Coat's picture

Capital raising at 35% discount??  The stench of death.

itstippy's picture

"Broadly flat" revenue in 2017 would be death for DB.  Their balance sheet is stuffed with non-performing loans, Greek bonds, dodgy derivatives, etc.  They need YUGE revenue for the next ten years to cover the unrealized losses currently on their books.  "Broadly flat" revenues doesn't do shit to make them solvent.

JustPrintMoreDuh's picture

No problem ...


Just issue more stock ... duh.


Find a happy place

GlassHouse101's picture

The bigger they are, the harder they fall.

Mexican Princess's picture

Keep your eyes on AUD/JPY as well as this represents risk on vs risk off.

Looks like currency markets are suggesting global markets head lower soon.




Yen Cross's picture

   That haberdashery of a lending institution needs to be restructured after it fails.

 AS banks come closer to failing, the desperation increases,

Drickes's picture

They had their headcount sink by 3% in 2015 and by a whopping 1.5% in 2016. That's excactly the sense of urgency needed in such a crisis. Mr. Cryan repeated about 150 times they wouldn't raise new shares, now they do. With no new regulatory requirements for equity, and "broadly flat revenue" (flat RWAs) what is the reason for them to raise new equity now? Must be something serious, well hidden in their balance sheet, IMO.

Stoonod Nicknud's picture

The solution to pollution is dilution.

RozKo's picture

China and Qatar buying the new offering? Just throwing this out here - but could it have anything to do with Deutsches gold books?

Goldennutz's picture

It's amazing how an institution that makes their own money becomes insolvent.


What's more amazing is the sheer stupidity of the supposedly "bright" people that do this.


Herdee's picture

What they're not telling everybody is the danger of hundreds of trillions of derivative positions which are daisy-chained. In other words, these guysdon't want anybody to know about risk contagion. Let's all stick our long necks and heads in the sand and pretend that nothing can blow up.