A 2006 Boom Wouldn’t Fix Deutsche Bank or Barclays, Analyst Says
- RoTE goals a struggle even if revenue soars: Goldman analysts
- Analysts cite regulatory burden and shrunken balance sheets
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Deutsche Bank AG and Barclays Plc, two of Europe’s biggest lenders, may have trouble meeting their targets even if they improve investment-banking revenue by 50 percent this year, according to analysts at Goldman Sachs Group Inc.
Deutsche Bank would struggle to reach a return on tangible equity of 10 percent this year even if investment-bank revenue matches the pre-crisis levels of 2006, while Barclays is in a similar position, analysts led by Jernej Omahen wrote in a note to clients.