Deutsche Bank Ag reports 7.1% revenue decline in 2016
02 Feb 2017 • About Deutsche Bank Ag (
$0H7D) • By InTwits
Deutsche Bank Ag reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Deutsche Bank Ag is a company in decline: 2016 revenue growth was -7.1%, 5 years revenue CAGR was -4.1%
- Deutsche Bank Ag has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 14.2%.
- CAPEX is quite volatile: 16,643 in 2016, 11,423 in 2015, 5,206 in 2014, 4,233 in 2013, 7,433 in 2012
- The company has unprofitable business model: ROIC is at -0.4%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Deutsche Bank Ag ($0H7D) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 51,957 | 45,256 | 45,396 | 47,093 | 43,744 | -7.1% |
| Net Income | 263 | 666 | 1,663 | -6,794 | -1,402 | -79.4% |
Balance Sheet
|
|---|
| Cash | 27,877 | 17,155 | 20,055 | 96,940 | 181,364 | 87.1% |
| Short Term Debt | 167,147 | 149,240 | 112,852 | 109,713 | 106,680 | -2.8% |
| Long Term Debt | 129,496 | 113,643 | 129,671 | 140,907 | 149,931 | 6.4% |
Cash flow
|
|---|
| Capex | 777 | 589 | 669 | 432 | 725 | 67.8% |
Ratios
|
|---|
| Revenue growth | -3.4% | -12.9% | 0.3% | 3.7% | -7.1% | |
| Net Income Margin | 0.5% | 1.5% | 3.7% | -14.4% | -3.2% | 11.2% |
| CAPEX, % of revenue | 1.5% | 1.3% | 1.5% | 0.9% | 1.7% | 0.7% |
| ROIC | 0.2% | 0.3% | 0.8% | -1.9% | -0.4% | 1.5% |
| ROE | 0.5% | 1.2% | 2.7% | -10.7% | -2.7% | 8.0% |
Revenue and profitability
The company's Revenue decreased on 7.1% in 2016.
Net Income marign jumped on 11.2 pp from -14.4% to -3.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Deutsche Bank Ag had CAPEX/Revenue of 1.7%. CAPEX/Revenue showed almost no change from 2013 to 2016. For the last three years the average CAPEX/Revenue was 1.3%.
Return on investment
The company operates at negative ROIC (-0.38%) and ROE (-2.74%). ROIC increased slightly on 1.5 pp from -1.9% to -0.38% in 2016. ROE increased on 8.0 pp from -10.7% to -2.7% in 2016.
Leverage (Debt)
Debt increased on 2.4% in 2016 while cash surged on 87.1% in 2016.
Appendix 1: Peers in Banks
Below you can find Deutsche Bank Ag benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | | 23.7% | 18.9% | 26.8% | 27.0% |
| Yapi Ve Kredi Bankasi As ($YKBD) | | 4.8% | 19.7% | 25.3% | 17.8% |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 9.5% | 4.8% | 12.1% | 5.5% | 7.7% |
|---|
| Deutsche Bank Ag ($0H7D) | | -12.9% | 0.3% | 3.7% | -7.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | 9.1% |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 2.2% |
|---|
| Deutsche Bank Ag ($0H7D) | 1.5% | 1.3% | 1.5% | 0.9% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | 28.5% |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.4% | 5.7% | 4.5% | 3.5% | 4.6% |
|---|
| Deutsche Bank Ag ($0H7D) | 0.2% | 0.3% | 0.8% | -1.9% | -0.4% |
