Understanding Deutsche Bank’s Segments

In this part of the series, we’ll analyze the performance of Deutsche Bank’s segments. Deutsche Bank (DB) reported losses of 6 billion euros for the third quarter. Third-quarter results were impacted by a 5.8-billion-euro impairment in goodwill and other intangible assets recorded in the Corporate Banking & Securities division and the Private Business Client division.

Deutsche Bank operates under the following segments:

• Corporate Banking & Securities (or CB&S) – This segment consists of two business divisions, Corporate Finance and Markets, and offers a range of financial products. It contributes ~50% to Deutsche Bank’s revenues.
• Private & Business Clients (or PBC) – This segment consists of three business units: Private and Commercial Banking, Advisory Banking International, and Postbank. In April 2015, Deutsche Bank announced plans to split off its Postbank business as part of its overhaul strategy.
• Global Transaction Banking (or GTB) – This segment delivers commercial banking products and services to corporate clients and financial institutions.
• Deutsche Asset & Wealth Management (Deutsche AWM) – This segment is an investment organization that offers investments across various asset classes to individuals and institutions.
• Non-Core Operations Unit (or NCOU) – This segment operates as a separate division alongside Deutsche Bank’s core businesses.

Deutsche Bank’s closest competitors are UBS, HSBC, Credit Suisse (CS), and Barclays (BCS). Investors seeking exposure to stocks of these companies could invest in the iShares MSCI Europe Financials ETF (EUFN).