(BBG) Deutsche Bank Shares Plunge to 2016 Crisis Level After Earnings

(Bloomberg) — Deutsche Bank AG fell to the lowest since a
crisis of confidence in 2016 as analysts cut their
recommendations on the stock after it released disappointing
fourth-quarter earnings on Friday.
Germany’s largest lender dropped in Frankfurt trading to a
value last seen in November 2016. Earlier in the day, MainFirst
analyst Daniel Regli lowered his recommendation on the stock to
underperform, citing the bank’s “damaged franchise as well as a
need for substantial restructuring, including the closure of
several businesses.” He didn’t say which. Neil Smith at Bankhaus
Lampe lowered the target price even though he maintained his buy
recommendation.
Deutsche Bank has now fallen 19.6 percent since the
beginning of the year, by far the steepest drop in the Bloomberg
500 Europe Banks and Financial Services Index. Barclays Plc had
the second-worst performance among big banks with a 5.1 percent
decline.
Chief Executive Officer John Cryan on Friday reported the
lowest quarterly revenue since 2010 amid a trading slump that
has hurt the lender’s investment bank. A sell-off across global
equity markets at the beginning of the week further depressed
the share price and it has continued to fall on Wednesday while
most competitors saw their stocks rebound.
Deutsche Bank had struggled to stem a slide in its shares
and maintain client confidence after the U.S. Department of
Justice requested $14 billion in September 2016 to settle a
probe tied to sales of mortgage-backed securities. The German
lender reached an agreement worth $7.2 billion in December of
that year.