Deutsche Bank vows to negotiate the U.S. Justice Department’s $14 billion fine lower, but even if that happens, there’s still plenty of negativity surrounding the stock, according to one analyst.
BERLIN Deutsche Bank’s supervisory board on Sunday appointed Christian Sewing as the German banking giant’s new chief executive officer, replacing John Cryan.
Sewing had been a management board member of Germany’s largest lender since January 2015 and was appointed as the bank’s president in March 2017. Cryan will leave at the end of April, the bank said.
The change was formally announced after Deutsche Bank confirmed late Saturday that its supervisory board would have a Sunday discussion on the CEO position. Along with the CEO change, the panel appointed management board members Garth Ritchie and Karl von Rohr as new presidents of the bank.
Paul Achleitner, chairman of Deutsche Bank’s supervisory board, thanked Cryan for his service and said the departing CEO had laid the groundwork “for a successful future of the bank.” He also praised Sewing.
“In his more than 25 years at Deutsche Bank Christian Sewing has proven himself a strong and disciplined leader,” Achleitner said in a formal statement. “The supervisory board is convinced that he and his team will be able to successfully lead Deutsche Bank into a new era.”
Cryan took over the top executive post in July 2015. He joined Deutsche Bank after the previous co-CEOs of Germany’s largest lender, Anshu Jain and Juergen Fitschen, stepped down amid the bank’s struggled with uneven profits that were repeatedly eroded by funds set aside for litigation expenses.
Cryan had pushed to cut costs, streamline computer systems and leave less profitable businesses and regions. Still, progress in improving Deutsche Bank’s earnings has been slow amid low-interest rates that squeeze lending margins and reduced income from trading stocks and bonds.
Deutsche Bank lost 735 million euros ($903 million) last year and declared a small dividend of 11 euro cents per share.
Rumors that Cryan might be replaced after three years of losses had swirled for weeks. Before becoming CEO of Germany’s biggest bank, the British financial executive served as president for Europe at the Singaporean investment company Temasek, and as the chief financial officer of Swiss bank UBS.
Sewing heads Deutsche Bank’s private and commercial bank division. He joined the bank in 1989 and has worked in Frankfurt, London, Singapore, Tokyo, and Toronto.
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