Deutsche Bank chief Christian Sewing has steadied the bank’s operations after years of volatility, yet its shares still lag behind the broader sector.

While the Euro Stoxx index of Eurozone lenders is up 14% YTD, Deutsche Bank is down 6% and remains the worst performer on the index, trading at less than 0.9 times book value. It has slipped into the red for the year, unlike peers such as BNP Paribas, Barclays, and even Société Générale.

The bank posted a 19% jump in investment‑banking revenue to €3.2 bn, with corporate and retail banking beating forecasts, but investors have moved from optimism about German transformation to skepticism. Economic growth has stalled under Chancellor Friedrich Merz, and rising energy prices have hurt prospects.

Recent policy moves—reform of pensions, tax cuts, and labor law easing—could lift growth. Sewing highlighted EU‑level regulatory reforms and capital‑market initiatives as potential tailwinds. Analysts doubt the bank can hit its 2028 target of a 13%_ok return on tangible equity, though the target could be reached if these incentives materialize.