Quirin Privatbank AG engages in banking and capital markets businesses in Germany. It offers financial and investment advisory services for private customers; and support and advisory services to companies for planning and implementation of equity and debt capital financing. The company was founded in 1998 and is based in Berlin, Germany.

Germany

Quirin Privatbank AG

Financial Services

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been good and slightly above its peers. On average, the company pays dividends annually. 

QB7.DE reported revenue of EUR 2 613mn in the last 12 months, down 50% from FY23. The institution earned EUR 0 mn of interest before provisioning and taxes (IBPT) in the trailing 12 months (TTM), a decline of 0% from FY23 The dynamics of more stable income, as measure by recurring income before provisioning and taxes (RIBPT), were rather similar. EPS grew 139% from FY23 to EUR 0.29.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 8ppts and its growth accelerated by 1ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Another important profitability metric, return on assets (RoA), amounted to 1.0% in the last 12 months, an increase from 0.9% in FY23. 

Quirin Privatbank AG reported a return on equity (RoE) of 15.6% in the last 12 months, down from 16.3% in FY23. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

QB7.DE has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The solvency (credit quality) of QB7.DE is very low. The credit profile rests on (a) a midly insufficient capital position, (b) weak asset quality, (с) a moderate corporate governance framework, (d) weak earnings power and cost efficiency, and (e) its weak liquidity profile. We draw special attention to the fairly low asset quality driven by low loss absorption capacity, rather weak ability to generate capital through ongoing operations, fairly weak liquidity position, which could instantly become a critical factor in the case of an unexpected bank run.

In highly turbulent market conditions, QB7.DE is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, QB7.DE is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from large to immense. 

Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E. 
	Editor's note: P/CR is Price to Core Revenue (CR), similar to P/S for corporates. CR = Net interest income + Net fee & commission income. P/IBPT is Price to Income Before Provisioning and Taxes (IBPT), similar to EV/EBITDA for corporates. IBPT = Core revenue -- Operating expenses + Non-recurring income. P/RIBPT is Price to Recurring Income Before Provisioning and Taxes (RIBPT), similar to P/FCF for corporates. RIBPT = Core revenue -- Operating expenses. 

Quirin Privatbank AG

€ 3.6

3

Quirin Privatbank AG

€ 3.6

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

€ 3.6

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