The Deutsche Dodge

In Germany they say, "Beweise her oder Maul halten." The English equivalent? "Put up or shut up!"

Either way, Deutsche Bank (NYSE: DB  ) lived up to the challenge by posting third-quarter results decidedly better than those of many of its more hapless competitors, including UBS (NYSE: UBS  ) , Citigroup (NYSE: C  ) , and Merrill Lynch (NYSE: MER  ) .

Deutsche's key to success was pretty simple -- don't lose more money than you make. Others in the industry, like Merrill, didn't take this route, and their massive losses led to some pretty pitiful quarters. Of course, Deutsche didn't escape unscathed -- its corporate and investment-banking segment took $3.2 billion in charges stemming from debt and equity trading, and write-downs on leveraged loan commitments.

Balancing out those losses were good showings from other business units. Although debt underwriting got dunked, equity underwriting rose 47% year over year, and merger-and-acquisition advisory climbed 29%. Also cushioning the blow were glimmers of life in the debt and equity trading groups; the corporate segment brought in more than $900 million, thanks to gains from some investment sales -- including Allianz SE, Linde AG, and its building at 60 Wall Street in Manhattan. The private-client and asset-management segment also posted nice 19% year-over-year growth.

Maybe I'm greedy, but I was hoping Deutsche might do even better. Over the summer, Bloomberg reported that thanks to a forward-thinking analyst, the firm seemed to have a better grasp than most on the troubles ahead. It's a tough call for an outsider to make, but maybe the company wasn't aggressive enough -- a la Goldman Sachs (NYSE: GS  ) .

Either way, the bank has done better than some so far, but as they might say at headquarters, they are not aus dem Grobsten heraus -- out of the woods -- yet.

More financial Foolishness:

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 539620, ~/Articles/ArticleHandler.aspx, 10/21/2016 11:07:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,065.62 -96.73 -0.53%
S&P 500 2,136.16 -5.18 -0.24%
NASD 5,245.28 3.45 0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 10:51 AM
DB $14.22 Down -0.16 -1.08%
Deutsche Bank CAPS Rating: **
C $49.40 Down -0.18 -0.36%
Citigroup CAPS Rating: ***
GS $174.17 Down -0.34 -0.19%
Goldman Sachs CAPS Rating: ***
MER.DL2 $11.64 Down +0.00 +0.00%
Merrill Lynch & Co… CAPS Rating: *
UBS $13.59 Down -0.05 -0.37%
UBS AG (USA) CAPS Rating: **