Deutsche Bank to report 3Q Oct. 30

FRANKFURT, Germany - Deutsche Bank AG, Germany's biggest, reports its third quarter earnings on October 30. The following is a summary of key developments and analyst opinion related to the company's business during the period.

OVERVIEW: Unlike many of its peers in Germany, Europe, and around the world, Deutsche Bank, has remained largely unscathed by the sub-prime crisis' effects that are currently gripping many of the world's banks.

Josef Ackermann, the chief executive of Deutsche Bank said last week, the company does not need any bailout funds from the federal government's 500 billion-euro banks rescue package, as a number of other German lenders have.

Frankfurt-based Deutsche said in an Oct. 7 market filing, it expected that it would have a Tier I capital ratio of about 10 percent at the end of the third quarter — a measure of its liquidity.

Deutsche has been steadily expanding, and in September announced it was buying a 30 percent stake in Postbank, a unit of Deutsche Post AG. Deutsche is also granted an option for another 18 percent in Postbank. The Postbank stake will give Deutsche more lucrative retail locations and customers.

Deutsche also announced in late October it raised its stake in Beijing-based Hua Xia Bank from 10 percent to 13 percent. In June 2007, Deutsche and Hua Xia launched a credit card business operations in China. Deutsche first acquired a stake in the Chinese retail bank in 2006.

BY THE NUMBERS: Analysts surveyed by Thomson Reuters expect third quarter earnings per share of 1.74 euros ($2.21) on 6.2 billion euros ($7.82) in revenue.

ANALYST TAKE: Deutsche Bank's own financial foundations look much better than many of its peers, but the prospects for general business in the coming months also depends on what the rest of the global economy does. Analysts at UniCredit maintain their "Buy" rating on the stock but recently lowered their target price to 68 euros ($86.36) from 88 euros ($111.76) on lower prospects for business in 2009, UniCredit said.

"In our view, Deutsche Bank will continue to navigate the banking and financial market crisis relatively well."

WHAT'S AHEAD: Deutsche said in early October that it wants to target more private and business clients and that it would open around 400 more branches — 150 of which would be in Germany — by 2012, requiring about 2,500 new staff. Deutsche's said it hopes targeting private and business clients will increase the segments pretax profit from 1.1 billion euros last year to 2 billion euros in 2012.

STOCK PERFORMANCE: Deutsche Bank's shares fell 13 percent during the quarter on the New York Stock Exchange.

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