Business World

Friday 19 July 2019

Deutsche CEO to face grilling

Deutsche Bank CEO Christian Sewing. Photo: AP
Deutsche Bank CEO Christian Sewing. Photo: AP

Deutsche Bank shareholders will quiz chief executive Christian Sewing on how he plans to deliver on revenue growth targets during a global roadshow to win their backing for a €7.4bn "reinvention" of the lender.

Shares in Germany's biggest bank were up 1.3pc by 3pm yesterday, clawing back some of a near 10pc fall, the biggest two-day drop in almost three years, after it detailed a sweeping overhaul involving 18,000 job cuts on Sunday.

The bank has embarked on a massive jobs cull as it launched the latest in a series of restructurings.

The revamp also includes the creation of a 'bad bank' to house billions of euro of costly trading positions and relieve pressure on Deutsche Bank's stretched balance sheet.

Some investors told Reuters that they doubted these moves, along with scrapping Deutsche Bank's global equities division, would be enough to turn around its flagging fortunes in the face of intense competition and low interest rates.

Hendrik Leber, a fund manager with Acatis, said the effort was five years too late and that the bank had missed the opportunity to return to a pre-eminent position in Europe.    

Reuters

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