Deutsche Bank (DB) replaced its Chief Executive Officer John Cryan after failing to plug losses and prevent decline of market share in prime areas. Christian Sewing, who is currently in charge of Deutsche Bank’s Private & Commercial Bank, has been appointed as the new CEO. Cryan will stay on until the end of April.
The bank also appointed Garth Ritchie and Karl von Rohr as new Presidents. Sewing’s fellow Co-President Marcus Schenck will leave the company later in 2018.

When Cryan assumed the mantle of CEO around two years ago, he took on issues such as low-interest rates and massive mortgage-related legal costs. This, combined with low profits in the investment banking and trading business, made things worse at Deutsche Bank. The former CEO’s strategy to reduce costs and straighten out legal problems did not prove sufficient. After raking up losses of over $10 billion during the past three years, the German bank decided it was time for a change.
During 2017, Deutsche Bank posted meager pre-tax profits compared to its peers. Its stock too saw a massive tumble versus its rivals who posted hikes. 2018 has not proved to be any better with low revenues in the underwriting and trading businesses. The company forecasted an increase in costs for this year and to tackle this rise, it announced job cuts in specific areas.
There is a need for a significant restructuring at Deutsche Bank. The company could look to reduce risks in trading and focus more on corporate lending. This, however, might not be very fruitful due to easy availability of financing through bonds. The bank could also look at a significant financial overhaul with the help of the government to find some solution to its problems.
Most Popular
LLY Earnings: Eli Lilly Q4 2024 profit more than doubles; revenue up 45%
Eli Lilly and Company (NYSE: LLY) Thursday reported a sharp increase in its fourth-quarter revenues. The pharmaceutical company's adjusted earnings more than doubled during the quarter. Worldwide revenue increased 45%
Ford Motor Company (F) Earnings: 4Q24 Key Numbers
Ford Motor Company (NYSE: F) reported revenue of $48.2 billion for the fourth quarter of 2024, up 5% year-over-year. GAAP net income was $1.8 billion, or $0.45 per share, compared
Philip Morris (PM) Q4 2024 Earnings: Key financials and quarterly highlights
Philip Morris International Inc. (NYSE: PM) reported its fourth quarter 2024 earnings results today. Net revenues increased 7.3% year-over-year to $9.7 billion. Organic revenue growth was also 7.3%. Net loss attributable