Published: Wed, April 11, 2018
Money | By Ethel Goodwin

Christian Sewing to become new CEO of Deutsche Bank

Christian Sewing to become new CEO of Deutsche Bank

Sewing has worked for Deutsche Bank since 1989, when he started as an apprentice.

Cryan has been ousted after just three years in the role, following a period of sustained losses at the bank. The bank past year announced the merger of its two domestic retail units, abandoning previous plans to sell one of them, Postbank.

In the press release announcing the appointment of Christian Sewing as Deutsche Bank's new CEO, Achleitner had called for a "new execution dynamic in the leadership of the bank", suggesting that Cryan was shown the door for his inability to carry out the strategy approved by Achleitner and the rest of the board. He had shared the role with Marcus Schenck, who earlier said he would leave the bank after the annual meeting on 24 May. Der Spiegel was first to report on Sunday that Sewing would likely become the bank's next CEO.

News of the personnel change was greeted warmly by the financial markets, with Deutsche Bank's share price rising by up to 4 percent in Monday trading.

Mr Sewing's promotion raises big questions over the future of Deutsche's investment bank, the source of most of its profits, but also of its most expensive governance scandals.

Business paper Handelsblatt said last month that Deutsche Bank remains "what it was when Cryan took the helm: a chronic patient".

That would signal a scaling back of the investment bank. Garth Ritchie would stay on as sole head of the investment bank, said the person familiar with the matter. The greenback has slumped amid USA political turmoil and on speculation that global central banks will follow the Federal Reserve in withdrawing monetary stimulus.

In February, he said: "When I took up this post two and a half years ago, I aimed to bring Deutsche Bank to a position where it could achieve its full potential".

Cryan responded by writing a memo to staff in which he said he remained "absolutely committed" to the bank.

Mr Achleitner said that Mr Sewing would be a "strong and disciplined leader".

The news comes after the German bank had a particularly tough fourth quarter of 2017, reporting a net loss of €2.2 billion ($2.75 billion). The company's rapid expansion under Josef Ackermann as a global investment bank saddled it with an unwieldy structure and a culture of excessive risk-taking, critics say.

Cryan, the son of a jazz musician, is married into the wealthy Du Pont family of the United States.

The other key challenge lies in Deutsche Bank's consumer unit.

But his tumultuous tenure as CEO highlights numerous bank's underlying issues.

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