Deutsche Bank Rally Continues

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Shares in Deutsche Bank are trading a little higher ahead of the market open today.

DB shares have seen a strong rally over recent weeks.  The bank’s share price rallied up off the 2021 lows around the 10 level to current highs around the mid 12s.

Rising global yields have been a big help to the banking sector, with lenders benefitting from higher rates on credit facilities and lending operations.

Strong Q4

Deutsche Bank investors have also been bolstered recently by the bank reporting a better than expected set of fourth-quarter earnings.

Wall Street had been looking for the bank to post earnings per share of -$0.02. However, the bank managed to stay in growth territory with an eps of $0.08 over the final quarter of 2020.

Bonus Increases

The company has been in the spotlight this week on the back of its 2020 performance. News emerged that bonuses are up 46% for its investment banking division.

Following a bumper year of trading returns as the bank’s traders profited from the record moves in the markets, DB has made several high-level hires recently as well.

The bank has taken on two of Morgan Stanley’s top rates traders as well as poaching the bank’s head of Macro sales. The hires a strong confirmation of the performance of the bank over the year, which investors and stakeholders have welcomed.

Flexible Working to Continue

There has also been some good (or bad) news for the bank’s staff this week. DB is considering allowing staff members to work from home three days a week in the wake of the pandemic.

In the UK, this would mean that the bank’s 8000 staff members would not be permitted to be in the office each day. DB is one of a number of banks that has made the decision after the pandemic to create more flexible working solutions for staff.

Breakout Continues

breakout

DB shares have rocketed higher since testing the rising trend line from 2020 lows. The move higher has seen price breaking above 11.14 and 12.51 to test highs of around 13.34.

Price is currently retracting from the level though the 12.51 level is holding as support for now.

While above here, the bias remains bullish. Back below there, the 11.14 and rising trend line are the next support areas to watch.

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