Published: Tue, April 10, 2018
Economy | By Melissa Porter

Amid losses, Deutsche Bank replaces CEO John Cryan with Christian Sewing

Christian Sewing, who has worked for Deutsche Bank for all but two years since 1989, was appointed on Sunday night to replace John Cryan after three years of losses.

Mr Sewing thanked him for his "enormous contribution" during an "extremely hard period".

He said he would analyze how Deutsche Bank wants to position its investment bank in a hard market environment but left open what structural measures he could take.

He added that there may sometimes have been good reasons for missing cost and revenue targets but it was damaging to the bank.

He wrote: "The new leadership team will not accept this anymore".

Deutsche Bank said late on Saturday that the board would discuss the CEO position and make a decision. "We need to demonstrate more visibly the excellent progress we are making in so many areas, so that doubts about our bank fade away over time".

On Cryan, Achleitner added: "Despite his relatively short tenure as CEO, he has played a critical role in the nearly 150-year history of Deutsche Bank - and laid the groundwork for a successful future of the bank".

Sewing topped a list of candidates as the preferred option presented by Achleitner at a hastily arranged board call on Sunday evening, two people familiar with the matter said.

The supervisory board also appointed management board members Garth Ritchie and Karl von Rohr as new presidents.

Paul Achleitner, the chairman of Deutsche Bank, said Cryan had "laid the groundwork for a successful future of the bank" despite his "relatively short tenure" as the group's chief executive. 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.

Early on, Cryan quickly announced thousands of job cuts to trim costs but reversed the bank's plans to sell its Postbank retail business after tepid interest from buyers. But the bank lost 735 million euros ($903 million) a year ago. Cryan had been in charge since 2015 and his mandate would have expired in 2020, but investors had lost faith that he could return the bank to profitability after three consecutive years of losses. Before graduating with a diploma from the Bankakademie Bielefeld and Hamburg, he completed a bank apprenticeship at Deutsche Bank.

Frankfurt am Main (AFP) - Investors welcomed the arrival of a new CEO at the head of troubled German lender Deutsche Bank Monday, lifting its stock price sharply as the market opened.

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