As part of the changes, Deutsche Bank put Garth Ritchie, previously co-head of the investment bank, in charge of that entire division, and named a new chief operating officer from the retail-banking division.
Deutsche Bank said reshaping the corporate and investment bank will mean headcount reductions in the affected regions and business areas. He didn't provide figures. Deutsche Bank said that the drop was less bad if adjusted for a weaker dollar and several one-off effects. By 2021, the firm said it expects roughly half of its revenues to come from its private and commercial banking business, where Sewing had served as president prior to becoming CEO, and from DWS, which spun out last month in an initial public offering.
According to Zacks, "On the NYSE, shares of Deutsche Bank have underperformed the industry, over the past six months". The stock is the third-worst performer among large European banks over the past five years.
Deutsche Bank is retreating from Wall Street and making "painful" jobs cuts in its investment bank after reporting a slump in profits.
Just weeks after ousting chief executive John Cryan and promoting retail banking head Christian Sewing to the top job, Deutsche has outlined a three-step plan to pull back from U.S. rates trading, reduce corporate finance coverage in favour of European clients and put its equities division under review. In U.S. rates sales and trading, it plans to shrink the balance sheet, leverage exposure and repo financing. The bank will be undertaking a review of its Global Equities business with the expectation of reducing its platform. "Therefore we have to act decisively and to adjust our strategy". "What the restructuring is missing is details for now". "However, we are not strong enough in other areas of this business", he added. It joined the ranks of global securities firms with the 1989 purchase of British merchant bank Morgan Grenfell and a decade later purchased Bankers Trust, a NY derivatives house. Companywide revenues declined 5% to EUR7 billion.
Paul Achleitner, now Deutsche Bank's supervisory board chairman, advised it on the purchase while at Goldman Sachs Group Inc.