Deutsche Bank share price continued its strong rally, hitting its highest point since January 2014. It has jumped in the last 12 consecutive months, reaching a high of €26.4, up by over 560% from its lowest point in 2020, bringing its market capitalization of over $60 billion.

Deutsche Bank’s growth continues amid trading revenue

Deutsche Bank stock has jumped by over 64% this year, beating many of its American and European rivals. This rally may continue after the biggest German bank published strong financial results. 

Deutsche Bank’s results showed that its profit more than doubled in the first half of the year. Its profit before tax jumped to €5.3 billion, helped by its trading business, which benefited from the tariff volatility. 

The profit also benefited from the non-recurrence of the Postbank takeover litigation provision. Without that impact, its profit was up by 37% during the period.

Its results showed that its revenue growth continued during the period, reaching €16.3 billion. If this trend continues, the company is expected to meet its annual target of approximately €32 billion. 

All four segments recorded double-digit profitability growth during the quarter. Its asset management’s RoTE jumped by 24%, while the private bank, investment bank, and corporate bank jumped by 10%, 13%, and 16%. Christian Sewing, the CEO said:

“Despite a more challenging environment in the quarter, Deutsche Bank again delivered a post-tax RoTE of above 10%, demonstrating the strengths of our underlying business model.We are very happy to have delivered our highest second-quarter and first-half year profits since 2007.”

Turnaround continues

Deutsche Bank’s results and its stock performance are notable for a company that was on the verge of collapsing a few years ago. Under Christian Sewing, it has resumed to revenue growth and boosted its profitability by cutting costs. It plans to slash about 3,500 workers this year.

The company has laid off thousands of workers over the years and boosted its capital position. Layoffs and its revenue growth have helped it become a highly profitable company. 

Deutsche Bank moved from a net loss of over 5.2 billion in 2019 to a profit of over 5.3 billion euros last year. 

The company has also been returning money to investors and has room to continue this trend. It had a CET1 ratio of 14.2% and the management hopes to be on a range of between 13.5% and 14%. 

The company has completed its €750 million in share repurchase program and has applied for another one. If approved, it means that the company’s distributions will get to €2.1 billion this year. 

Deutsche Bank share price analysis

DBK stock chart | Source: TradingView The weekly chart shows that the DB stock price has been in a strong bull run this year and is now trading at its highest level in eleven years. It jumped to a high of €26 and has remained above the 50-week and 100-week moving averages, a sign that bulls are in control.

Top oscillators like the Relative Strength Index (RSI) and the MACD have continued rising. Therefore, the stock is likely to continue gaining, with the next key point to watch being at €30. 

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