10 Best European Bank Stocks to Buy According to Analysts

6. Deutsche Bank Aktiengesellschaft (NYSE:DB)

Number of Hedge Fund Holders: 12

Stock Upside Potential as of January 24: 13.34%

Deutsche Bank Aktiengesellschaft (NYSE:DB) is a German financial services company that offers corporate, investment banking, and asset management products and services. The bank has succeeded amid an aggressive restructuring drive that entailed downscaling fixed-income businesses and cutting staff. Consequently, the stock was up by 49% in 2024.

Last year, the Frankfurt-based bank laid off 111 senior managers in its retail and private wealth unit as part of a cost-saving drive. The cut came as the bank sought to reduce its cost-to-income ratio from 80% to 60%. In addition to pursuing cost cuts, it is also seeking to grow its retail unit and wealth management arm. Management is optimistic about reaching 2025 growth targets due to steady revenue growth, capital strength, and cost reductions.

After generating losses between 2005 and 2019, the bank has become profitable, with its profit expected to exceed the €9 billion mark in 2025 and 2026. The robust growth and turnaround are attributed to Deutsche Bank Aktiengesellschaft (NYSE:DB) strengthened capacity and ability to manage loan losses. The bank’s transition from a losing phase to a projected profit of a sizable amount suggests a noteworthy restructuring success. Analysts and investors alike have taken notice of Deutsche Bank’s capacity to withstand possible financial shocks while maintaining its profit base growth.