Deutsche Bank vs Santander Performance Comparison

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Introduction With this assignment, we intend to analyze and compare the performance of two of the biggest European banks during the past 5 years: Santader and Deutshe Bank. We do this taking into account the difference in their activities (such as the impact on commercial banking activities vs traditional retail banking) as well as the markets in which they operate. In the first part of this paper, we will take a brief overview of both banks recent history and current situation, and then proceed to analyze the main differences between both banks balance sheets and income statements for the past 5 years. Finally, we present conclusions about the main differences between these banks, and about the recent performance trends of the two.

Deutsche Bank is a leading global banking and financial services company with its headquarters in the Deutsche Bank Twin Towers, Frankfurt, Germany. It employs more than 100,000 people in 74 countries, and has a large presence in Europe, America, AsiaPacific and emerging markets. Being a multinational bank, it has offices in major financial centers including New York, London, Frankfurt, Paris, Moscow, Amsterdam, Dublin, George Tow, Cayman Islands, Toronto, São Paulo, Singapore, Hong Kong, Tokyo, Sydney, Dubai, Riyadh and Mumbai. In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent. The financial products and services offered by the bank are for corporate and institutional clients along with private and business clients. Including sales, trading, research and origination of debt and equity; mergers and acquisitions (M&A); risk management products, such as derivatives, corporate finance, wealth management, retail banking, fund management, and transaction banking. Their mission is to be global leaders of financial solutions, creating value to their clients, shareholders and communities where they operate. They focus their activity in a global market, stating that "The object of the company is to transact banking business of all kinds, in particular to promote and facilitate trade relations between Germany, other European countries and overseas markets." However, they identify their brand with their German origins, being clear, precise, confident, responsible, agile-minded, excellent performers, and doing a mix between passion and precision, pursuing excellence. This is what stakeholders can expect from the bank, excellence, relevant client solutions and responsibility. Deutsche Bank comprises three Group Divisions: Corporate and Investment Bank (CIB); Private Clients and Asset Management (PCAM) and Corporate Investments (CI). The excellent performance of this bank, and their outstanding reputation in the market was reflected by the awards Deutsche Bank won in 2010: “Bank of the Year” from International Financing Review, “Best Global Investment Bank” from Euromoney magazine and “Derivatives House of the Year” from Risk magazine. These are only some awards that were achieved by Deutsche bank.

 

Financial overview: In December 31st, 2010, the Company operated in 74 countries out of 3,083 branches worldwide, of which 68 % were in Germany. In March 2010, the Company closed the acquisition of Sal. Oppenheim Group. In April 2010, the Company acquired commercial bank business in Holland from ABN AMRO Bank N.V. (ABN AMRO). In November 2010, the Company acquired 51.98% interest in Deutsche Postbank AG. In February 2011, the Company sold its 9% stake in RTS OAO. In June 2011, Deutsche Bank AG ceased to be substantial holders in Australian Agricultural Company Limited.

Banco Santander is a retail bank, the main aspect of Santander's operations - generates 82% of the group's profit, is based in Spain and present in ten major markets. It is the eurozone’s leading bank and is among the top 15 financial institutions worldwide in terms of market capitalisation, with more than €50 billion at the end of 2011. Founded in 1857, Banco Santander...
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