NEW YORK (TheStreet) -- Shares of Deutsche Bank (DB - Get Report) are lower by -2.02% to $34.37 in early afternoon trading, after the financial institution was fined $8 million (4.7 million pounds) by the U.K.'s Financial Conduct Authority for inaccurately reporting market transactions for almost six years, Reuters reports.
Deutsche Bank is said to have falsely reported all of the contract-for-difference equity swaps it executed between November 2007 and April 2013. Under European Union Law all CFDs must be reported to a regulator.
By failing to submit accurate transaction reports the FCA says Deutsche has potentially impeded the regulator's ability to find and investigate abuses and manipulations in the market, and insider trading, Reuters added.
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Separately, TheStreet Ratings team rates DEUTSCHE BANK AG as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEUTSCHE BANK AG (DB) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The share price of DEUTSCHE BANK AG has not done very well: it is down 23.82% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 32.5% when compared to the same quarter one year ago, falling from $466.56 million to $315.03 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Capital Markets industry and the overall market, DEUTSCHE BANK AG's return on equity significantly trails that of both the industry average and the S&P 500.
- DB, with its decline in revenue, slightly underperformed the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 3.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- DEUTSCHE BANK AG's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DEUTSCHE BANK AG increased its bottom line by earning $1.01 versus $0.28 in the prior year. This year, the market expects an improvement in earnings ($1.97 versus $1.01).
- You can view the full analysis from the report here: DB Ratings Report
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