Jan 26 Shares in Deutsche Bank AG
offers plenty of upside, despite a surprise fourth quarter loss
unnerved investors, according to Barron's in its Jan. 27
The German bank's shares fell over 5 percent on Jan. 20
after it announced that various charges and lower-than-expected
earnings caused a loss of 1 billion euros ($1.37 billion) for
the quarter compared with an anticipated profit of 700 million
euros, Barron's reported.
Nonetheless, some fund managers and analysts are optimistic
about the bank's stock. Deutsche Bank now trades at a discount
to book value of around 30 percent, despite a small rally that
pushed the stock up more than 13 percent during the first two
weeks of this year, Barron's reported.
The fourth quarter loss is nothing more than "prudent
housecleaning" that will place the bank in a better long-term
position, Barron's reported. Deutsche Bank, and most other big
European banks, has been reducing its balance sheet and
refocusing on its "core activities," Barron's reported.
(Reporting by Suzanne Barlyn; Editing by Marguerita Choy)