Deutsche Bank shares have traded above their book value for the first time since the start of the global financial crisis, marking a milestone in the turnaround of Germany’s largest lender after years of legal setbacks, writedowns and restructuring.
The stock rose to €33.95 in early trading on Monday, climbing above the bank’s most recent reported book value per share of €33.66, a measure of total assets minus liabilities excluding shareholders’ equity.
Price to book ratio is a key valuation metric for banks, reflecting investor confidence in a lender’s assets, returns and growth outlook. Deutsche had traded at a discount to its book value since early 2008, when doubts about the health of the banking sector were mounting in the early stages of the financial crisis.