Deutsche Bank AG
DBK: XETR (DEU)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€48.00 | Cxnx | Ydxd |
Deutsche Bank Earnings: Legal Provisions Negate Otherwise Decent Period
Deutsche Bank reported second-quarter results that were heavily affected by EUR 1.6 billion in litigation charges. Related to the Postbank takeover litigation, the bank booked a EUR 1.3 billion provision, which it believes should be sufficient to cover all related claims. The litigation provision was already announced on April 26 after a hearing in the Higher Regional Court in Germany. Outside of this sizable one-off, the bank had a decent quarter, and we maintain our EUR 13 per share fair value estimate. Our no-moat rating is unchanged.