Buy or not to buy Deutsche Bank shares? Our future forecast 2022!

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October 9, 2021
Buy or not to buy Deutsche Bank shares Our future forecast 2021!

Deutsche Bank AG is the most extensive banking house based in Frankfurt.

The business areas include private customer business with account management and investment advice and comprehensive services for corporate customers and institutional investors.

The bank is associated with the US billionaire and President Donald Trump and is considered a significant financial partner and lender of other well-known personalities.

The bank also focuses on investment banking. As a result, the Deutsche Bank share is one of the essential financial stocks.

Table of Contents

Buying Deutsche Bank shares – what should you watch out for?

You should pay attention to the following points when buying DB shares:

  • Why should you invest in Deutsche Bank shares? The Deutsche Bank share is probably behind its heyday, but it is an attractive, stable, and at the same time relatively cheap paper! As the largest bank, the company is also systemically relevant and widely integrated into the economy.
  • Where can I buy Deutsche Bank shares? Deutsche Bank shares can be purchased from any online broker. However, we recommend our test winner broker ETFinance. ETFinance is the absolute best stock broker, in our opinion. Many brokers charge fees for ETFs and individual stocks that could significantly reduce the return. Not so with ETFinance with 0% fees, the broker is, therefore, the optimal choice.
  • What does the future of Deutsche Bank shares look like? After a sharp drop in price in 2020, the paper is on the upswing again. As a result, there is a chance that the price will continue to rise.

Where and how to buy Deutsche Bank shares Best brokers in comparison:

Rating

Min. Deposit

Min. Spread

Assets

Views

Positive Reviews

Negative Reviews

Likes

4.9/5
250
0.07
  • Commodities
  • Forex 40 +
  • Metals
  • Stocks
  • Indices
  • Cryptocurrencies
85
2
4.5/5
250
0.07
  • Metals
  • Forex
  • Indices
  • Cryptocurrencies
  • Commodities
  • Stocks

 

254
82
3
58
4.9/5
250
0.07
  • Forex 40+
  • Metals
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

 

480
80
3
50
Buying Deutsche Bank shares in 3 steps: Our guide

Bank shares are considered a relatively safe investment for long-term investors. As a result, short-term price explosions are hard to be expected.

The expected dividend payments with increasing returns could also make Deutsche Bank shares a worthwhile investment for longer-term investors. So what’s the best way to buy Deutsche Bank shares?

1. How much Deutsche Bank does the portfolio include?

It is essential to achieve a certain degree of diversification in the share portfolio. Therefore, you should consider various sectors of the economy in the portfolio on a balanced scale to protect your investment from sector-specific problems. Because despite all the analyses, there is also a certain risk associated with every equity investment. Every investor should therefore determine how high the investment should be for the respective industry.

Another consideration is your willingness to take risks, whether you want to invest speculatively or conservatively. Here too, of course, you can diversify your portfolio. The following recommendations apply to Deutsche Bank shares:

Recommended proportion of the share portfolio: 1-10%

Recommended proportion of total assets: 0.01-5%

2. Registration with the right broker

In principle, shares can be purchased from any bank.

However, there are regular fees. These fees vary from bank to bank. Therefore, you should usually opt to buy it through an online broker.

But even with the various online brokers, there are huge differences in fees and customer service. Therefore, a comparison of the multiple offers is always recommended.

The offers from online brokers are constantly being developed, and shares can be bought with just a few clicks. Many providers also publish corresponding mobile phone apps so that purchases can also be made with a smartphone.

etfinance

2. First deposit

The payment is usually made via credit card, instant transfer, PayPal, Skrill, Neteller or other online payment providers. The online broker sector is now so broad that everyone should find the right payment option.

What needs to be considered here is a possible minimum deposit. Usually, this is between 50 and 250 euros. So you can directly worry about the amount of the investment. As a general rule, you shouldn’t invest more than 5 per cent of your available money in a share.

Thus, with an individual calculation, you can quickly find the actual investment amount.

Below is an overview of all the payment methods available at ETFinance:

Payment optionPossible?
Buy Deutsche Bank shares with a credit card✔️
Buy Deutsche Bank shares with PayPal✔️
Buy Deutsche Bank shares with Skrill✔️
Buy Deutsche Bank shares with bank transfer✔️
Buy Deutsche Bank shares with Neteller✔️
Buy Deutsche Bank shares with UnionPay✔️

3. Buy Deutsche Bank shares online

Once the decision has been made in favour of a provider, the sum to be invested is first paid into a so-called reference account with the provider. This can be done by normal bank transfer, by credit card or with Paypal done. Then, if the money is well written, you can place a buy or sell order with just a few clicks. But it is also essential to find the right time since the stock exchange prices are subject to constant fluctuations.

It is advisable to set an entry price in advance and to set the order with a limit. The order will then be executed as soon as the desired price is reached. Depending on how the limit was established, the order execution may take a long time or not take place at all.

If you want the paper in any case and immediately, then you do this through a market order, which buys at the current lowest price.

After the purchase, you should also think about hedging your investment. Here there is the possibility, for example, of offering the Deutsche Bank share for sale again immediately after the purchase with a so-called stop-loss order. Here you set a limit on how much price loss you can tolerate for your investment.

If the Deutsche Bank share price falls below the set limit, the shares can be sold without limit. This way, you can protect yourself from nasty surprises even if you don’t want to or can’t study the courses every day.

Deutsche Bank share price, price & key figures

The long-term chart paints a rather bleak picture. From a high of more than 90 euros, the course is the wake of the financial crisis to about 15 euros crashed.

As a result, the rate stabilised around 30 euros for several years, only to lose ground again in the last 3 to 4 years.

Deutsche Bank shares currently cost around EUR 9.00. In terms of technical chart signals, up and long signals currently predominate, with the Moving Average Convergence Divergence (MACD) indicator also remaining in the bullish sector. Therefore, in the analysts’ recommendations, keep selling and keep more or less the balance, and the average target price is 10 €.

At the current share price, the company’s market value is a little over 15 billion euros. Since the financial crisis in 2007, Deutsche Bank has stumbled heavily. Today, the. share price has slumped more than 90% from the top at € 90 to below € 10.

After many years of losses, the 2018 financial year saw the first profit, albeit a more modest one. For this reason, a dividend payment of € 0.11 (1.58% dividend yield) was expected again from 2019.

In the fundamental analysis, the share currently appears to be slightly undervalued given the given growth potential at today’s price (as of 02/07/2020). From the perspective of the analysts, the Deutsche Bank share price currently has no significant recovery potential.

So is it still worth investing in Deutsche Bank shares today in the hope of a turnaround? This decision is up to you – but we are expecting a slight increase in the share price.

Buy or not to buy Deutsche Bank shares Our future forecast 2021!

Deutsche Bank share key figures

The long-term opportunities and risks that Deutsche Bank has been involved in practically every financial scandal in recent years are unprecedented.

Interest rate manipulation as part of the Libor scandal, money laundering practices as revealed in the Panama Papers, and tax fraud using cum-ex transactions, brought the public prosecutor’s office to the fore immediately on the plan and led to searches of the company headquarters.

At the moment, it is difficult to estimate what other financial risks, such as fines or compensation, are associated with it.

In addition, in 2016, Deutsche Bank was classified by the International Monetary Fund (IMF) as the bank with the highest systemic risk in the world. Therefore, the possible merger with Commerzbank, brought into play by politicians, is viewed critically by the markets since such a takeover of Commerzbank would entail more financial risks than opportunities.

On the other hand, Deutsche Bank is still the most significant financial institution. For example, as the main shareholder of the DWS Group, it founded (listed on the stock exchange since 2018) manages at least 700 billion euros.

Due to its systemic relevance, Deutsche Bank also had to increase its equity capital significantly, so that insolvency, as once at the Lehmann Brothers, seems almost impossible. Thus, you would have a relatively safe position in your securities account; the currently low share price can be used to join Deutsche Bank.

Deutsche Bank stocks – pros and cons

  • Big bank
  • Fairly high dividend
  • Bad publicity

Deutsche Bank share valuation: arguments to buy shares

Until the financial crisis in 2007, Deutsche Bank was a real “global player”. In 2008, for example, the institute was still considered the world’s largest foreign exchange dealer.

The US Senate Committee of Inquiry into the Financial Crisis then identified Deutsche Bank as one of the main culprits responsible for triggering the financial crisis. Eventually, the bank committed to pay more than $ 7 billion.

There is now hope that there will be no further hidden risks, such as fines. The bank is from the Financial Stability Board as a systemically important financial institution classified and therefore subject to strict requirements to the capital base, which also provides an investment in the bank for a certain amount of security.

Christian Sewing, the current group leader, emphasised in 2018 that costs were under control and that there was enough equity to be able to grow again. He also relies on consistent savings. For example, to reduce the number of employees from once more than 100,000 (2015) to less than 90,000 at the end of 2019.

 Price fantasy also offers speculation about a possible merger with Commerzbank, which was also fueled by politics.

Market capitalisation and equity bring stability

The key figures show a market capitalisation of more than 16 billion euros. The equity amount of approx. Sixty billion euros has recently increased again and above all brings stability and security for the future and gives hope for a future, increasing dividend yield.

This is currently 1.58 per cent per year. However, the price-earnings ratio (P / E) is presently seven and thus indicates a certain undervaluation of the share. The largest shareholders of Deutsche Bank AG are, in addition to a high free float of over 85%, the major Chinese shareholder HNA (Hainan Traffic Administration Holding LTD), Blackrock, Qatar in the person of Sheikh Hamar bin Jassim bin Jabor Al-Thani, Hudson Executive Capital LP, Cerberus Capital Management LP and Vanguard.

Sell ​​Deutsche Bank shares? What are the advantages of a sale?

The analysts, the bank shares in 2020 not be very positive since.

So the sell and hold recommendations are balanced. However, there are still risks associated with allegations of money laundering that should not be underestimated. In connection with the Danske banking scandal, high fines may be imposed on Deutsche Bank. In addition, considerable pressure is being built up again on Deutsche Bank in the USA because of the so-called “Panama Papers” and the loans to US President Donald Trump.

In addition, a lawsuit by Warburg Bank is pending because of the cum-ex business practices. All of these points raise concerns that Deutsche Bank will again face substantial capital claims.

It is also difficult to assess the risks that arise from the announcement by the Chinese HNA that it intends to withdraw from Deutsche Bank after the unexpected death of co-founder Wang. After all, HNA holds a stake of more than 7% in Deutsche Bank.

Competition is often more profitable

The company is also troubled by competition. US banks, in particular, are much more profitable.

The net profit of US bank JP Morgan Chase in the first half of 2018 was 30 times that of Deutsche Bank. But even in European comparison, the bank their competitors HBSC, BNP Paribas, Credit Agricole, and Banco Santander are far behind.

As a result, Deutsche Bank also had to leave the European trading platform Euro-Stoxx 50 in September 2018 because the market value was too low.

Although the share price is slightly higher today than at the end of December 2018, it is still at its lowest level in 20 years and has lost 90% compared to 2007. The analysts’ mean target price is 10 euros.

Buy or not to buy Deutsche Bank shares Our future forecast 2021!

Investing in Deutsche Bank Stocks – Yes or No?

According to the motto “it can’t get any worse”, you can invest in Deutsche Bank shares in the hope of a turnaround.

The savings measures initiated by CEO Christian Sewing may pay off at some point, and the bank can increase its profitability again. In addition, the merger with the partially nationalised Commerzbank, which politicians in particular brought up, could also help the share price get back on its feet.

In addition, an investment in Deutsche Bank currently offers a dividend yield of 1.58 per cent. According to FactSet estimates, a significantly increasing dividend yield can be expected in the coming years.

Fees when buying Deutsche Bank shares

We compare the fees of the largest brokers with the following example:

  • Purchase of Deutsche Bank shares valued at € 1,000
  • Hold Deutsche Bank shares for one month and then sell
  • No course changes in the 30 days

With these assumptions, we now compare the fees of Libertex, ETFinance & Plus500 :

providersLibertexETFinancePlus500
Depositfor freefreefor free
Purchase fees€ 2.20free3.08%
Holding feesfor freefree0.05%
Sales charges€ 2.20spreads3.08%
Total fees€ 4.40Reasonable € 92.32

Deutsche Bank share news & history

Deutsche Bank was founded in 1870  by Adelbert Delbrück and a banking consortium. The bank had share capital at today’s equivalent of around 1 billion euros when it was founded.

According to today’s parlance, the company’s declared aim was a cosmopolitan orientation, i.e. a globalised company.  After it was founded, Deutsche Bank expanded internationally and established branches or partnerships in Asia, North and South America, and created its subsidiary for London’s then and still crucial financial centre, becoming a “global player”.

Successes and Crises

As a result of World War I and the global economic crisis in 1929, Deutsche Bank also suffered significant setbacks. Moreover, during the Nazi era, Deutsche Bank was unable to evade the influence of the Nazi regime.

However, this did not lead to an indictment in the Nuremberg war crimes trials. Immediately after World War II, Deutsche Bank temporarily decentralised itself under pressure from the victorious powers.

But decentralisation took place as early as the 1950s. At the same time, among other things, with the establishment of the Society for Securities Savings (DWS), a broad public business was built up.

The number of private customers had risen to 10 million by 2008. The Deutsche Bank had then risen again to a globally outstanding capital service provider until the financial crisis in 2007.

With the takeover of the US mortgage bank Mortgage IT, Deutsche Bank plunged deep into the maelstrom of the financial crisis in 2007 and was convicted of irresponsible lending. This led to immense capital losses.

In the period that followed, Deutsche Bank’s balance sheet was repeatedly burdened by further scandals. Deutsche Bank was involved in interest rate manipulation due to the Libor scandal, money laundering, and tax fraud using cum-ex transactions. All of this again brought considerable capital risks., Moreover, a collapse in confidence among investors and private customers.

Deutsche Bank share forecast 2021

The current development does not make the Deutsche Bank share appear to be an ideal investment.

The share price development of the last few years is anything but reassuring with a 90% loss. On the other hand, Deutsche Bank is a systemically important company with a critical size, making bankruptcy appear unlikely.

The austerity measures that have been initiated and the growing dividend yield can also awaken a glimmer of hope.

Conclusion – Deutsche Bank share valuation

If you want to buy Deutsche Bank shares, it is easiest to do this through an online broker.

Deutsche Bank is a systemically important, globally positioned company with a growing dividend yield.

The company has existed for about 150 years. It has survived two world wars and the global economic crisis. It has been able to reposition itself every time.

Deutsche Bank is one of the ‘too big to fail’ companies, and the probability is very high that the state could step in even in the event of extreme imbalances.

Buy or not to buy Deutsche Bank shares Our future forecast 2021!

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FAQs

The Deutsche Bank shares are to be traded, so investors naturally wonder whether they should expect a dividend. Deutsche Bank holds its Annual General Meeting on a regular basis. A dividend is then paid out.

In the past few years, the Deutsche Bank share has been able to pick up more and more momentum. The investment should therefore still be worthwhile.

The Deutsche Bank share is listed on the Xetra and can be traded there.

In the article, some ways are presented how you can get your own Deutsche Bank shares quickly. If you do not want to purchase the share directly, you also have the option of using CFDs to bet on rising or falling prices.

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