Deutsche Bank SWOT Analysis 2022 ❤️

Deutsche Bank SWOT Analysis: Deutsche Bank (DB), is a global bank and financial solution provider. Its strengths include adequate capital and liquidity, asset quality, cost efficiency, improved non-interest income, and asset quality. However, a decrease in the net interest margin may be an area of improvement. 

Strategic initiatives and the growing market in Germany for payment channels, as well as the wealth management sector could provide significant growth opportunities. 

The bank’s growth could be affected by a prolonged low-interest environment and regulatory changes within the European Economic Area.

deutsche bank swot analysis

About Deutsche Bank

Established in 1870, the Deutsche Bank specializes in financing foreign trade and increasing German exports. 

The bank eventually played a major role in the development of german industries since the base for the model business of this bank was providing financial assistance to German companies.

The bank’s statute was approved on January 22nd, 1970. The bank was granted its banking license on the 10th of March, 1870, by the Prussian government. The main focus of the statute was on foreign-owned businesses.

The primary goal of the company is to help businesses of all sorts, specifically. The goal is to encourage and encourage the trade relationship between Germany as well as other European nations and also other international markets.

Quick Stats on Deutsche Bank

Founder Georg Siemens, Adelbert Delbrück, Ludwig Bamberger
Year Founded 1869
Origin Berlin
No. of Employees 83,797
Company Type Public
Market Cap € 22.89 Billion (2021)
Annual Revenue € 24.028 Billion (2020)
Net Income/ Profit € 624 Million (2020)

SWOT Analysis of Deutsche Bank

It is the SWOT assessment for Deutsche Bank is known as an instrument for strategic planning that is utilized by the managers in Deutsche bank to do a thorough study of their bank. 

It’s a great way to comprehend the current Strengths (S) and weaknesses (W) Opportunities (O) and threats (T) Deutsche Bank is confronting in its present business context.

Strengths of Deutsche Bank

  • leading European Bank: The Company has a solid base in Germany which is Europe’s biggest economy. It caters to institutional, corporate as well as private customers, and offers services like transactions banking and financial market financial services, asset management, and retail banking.
  • Consolidation of business operations: To increase the foundation of its strength, it has organized its business operations and focuses on maximizing its resources and the cost of capital. It has also reorganized its business segments into distinct entities with the intention of strengthening each company by increasing coverage and expanding its market share.
  • Retail business within Germany: Through the integration of Postbank and PCB’s German business, with the intention of creating a marketplace-top retail brand in Germany is bringing higher efficiency through a broader range of operations that results in better results and stability for the business.
  • Banking on investments: Reinforcing their business by partnering with multinational corporations through the creation of one, integrated investment and the corporate bank is the thing Bank has been recognized for since the beginning of its existence.
  • The Strong Strong Brand: Deutsche Bank has been ranked 441 on Forbes magazine’s list of top global 2000 brands (as of the month of May 2017). The brand was valued at 34 billion dollars in May 2017 and has generated revenues that were $44.28 billion.

Weakness of Deutsche Bank

  • Intense competition: As every bank wants to take the market, the bank is under intense pressure from other banks.
  • Restricted Reach Because the organization is primarily established in European markets, it has been difficult to capitalize on the markets in developing countries.
  • Inaccurate Market Proportions: The USP is unclear, making it difficult for it to compete with established companies that spend large amounts on marketing.
  • Incorrect Financial planning: The company uses less cash than suggested by the liquid and asset ratio, which could create problems for the company’s financial goals.
  • High Attrition Ratio: This higher attrition rate results in high training and development costs, which is unjustifiable compared to other companies.

Opportunities for Deutsche Bank

  • Digital integration of new technology platforms as well as creative techniques for digital Integration methods are being proven to be the driving force behind and propelling the development of the financial industry across the globe. The changing pattern of demand for customers with the rise of fintech companies and the changing lifestyles of individuals, a desire to make banking simple and easy and financial services all under one roof, and the rise of emerging nations are just some of the elements that will assist the company to grow.
  • Expanding Globally: Currently, the company is active in more than 70 countries and has 2700+ branches in operation with the help of more than 98000 employees (2016) worldwide. As the world develops, it brings with it new economies, it creates opportunities for expansion.
  • Multiplying business Deutsche Bank is a part of various business segments, including Corporate Banking and Securities, Asset and Wealth Management, Global Transaction Banking, Non-Core Operations Unit, and Private and Business Clients. Diversifying into other business segments can assist the business in achieving its full potential.

Threats To Deutsche Bank

  • Integrations with digital technology new technologies and innovative technology for digital integration methods are being demonstrated to be the primary factor behind and driving the growth of the financial sector across the world. The shifting patterns of customers’ demands as a result of the increasing popularity of fintech firms and the changing lifestyles of consumers who want to make banking easy and accessible, financial services that are all under one roof, and the growth of emerging nations are just a few factors that will help the company in its growth.
  • Expanding globally: Currently company is present in more than 70 different countries and has more than 2700 branches that are operating with the support of over ninety thousand employees (2016) across the globe. As the global economy grows and it creates new economies and opens up possibilities for expansion.
  • multiplying for business Deutsche Bank is one of a variety of business segments, which include Corporate Banking and Securities, Asset and Wealth Management, Global Transaction Banking, Non-Core Operations Unit, and Private and Business Clients. Diversifying into different business areas can help the company to reach its maximum potential.

Limitations of SWOT Analysis at Deutsche Bank

The SWOT analysis is a popular tool for strategic planning, but it does have some limitations.

  • Some capabilities or factors can be both a strength or a weakness of an organization. This is one of the main limitations of SWOT analysis. If the company is able to develop products faster than its competitors, changing environmental regulations could be a threat or a benefit.
  • SWOT is not a way to gain a competitive advantage. It should not be a goal in and of itself.
  • This matrix is just a starting point to discuss how strategies might be implemented. The matrix provided an evaluation window, but not an implementation plan. It was not based on the strategic competitiveness of Deutsche Bank.
  • SWOT is a static analysis – an analysis of the status quo that includes a few potential changes. The dynamics of a competitive landscape may change as circumstances, capabilities, threats, and strategies change.
  • The SWOT analysis could lead a firm to focus too much on one external or internal factor when formulating its strategies. SWOT analysis may not show the interrelationships between key internal and externe factors. This could be helpful in formulating strategies.

Weighted SWOT Analysis of Deutsche Bank

Due to the limitations of the SWOT matrix/SWOT analysis, corporate managers decided that each firm’s internal strengths and weaknesses should be given weightage. 

Organizations assess the impact of future events on company performance and the likelihood that they will occur.

This is a Weighted SWOT analysis. This is better than a simple SWOT analysis. Deutsche Bank managers can concentrate on the most important factors and ignore the rest. 

This solves the problem of organizations making too many lists, but not enough critical factors.

References Books on Deutsche Bank AG SWOT Analysis

Deutsche Bank AG (2018), “Deutsche Bank AG Annual Report”, Published in 2018.

Euromonitor (2018), “Financial Sector Analysis “, Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)

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