LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Deutsche Bank seeks new CEO as it runs out of quick fixes - sources

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Mar 27, 2018
08:48 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Deutsche Bank has begun searching for a new chief executive, two people familiar with the matter said on Tuesday, as investors grow frustrated with the slow turnaround of the loss-making German lender.

Paul Achleitner, chairman of the board, has initiated a search to replace John Cryan, the British chief executive officer who has been in office less than three years, the people said on condition of anonymity.

A senior executive at Deutsche separately cautioned that there was little that Germany`s largest bank could do to quickly improve sentiment.

"We cannot cut costs short term without sacrificing revenue going forward," the banker said on condition of anonymity.

"What we are working on is changing long-term processes. That`s a real way to cut costs, but this takes time."

The CEO search, which is in the early stages, and the call for patience come after a flurry of negative headlines for the bank after it reported a third consecutive annual loss.

The bank said its loss in 2017 was larger than initially reported, and it has warned about conditions in the first quarter.

The Times newspaper reported on Monday that Deutsche Bank was seeking to replace Cryan after a boardroom row over the bank`s future and alarm at its performance.

The paper said that the bank had approached Richard Gnodde, a senior executive of Goldman Sachs but that he was believed to have turned down the position.

The paper also named Jean Pierre Mustier, chief executive of UniCredit SpA, and Bill Winters, chief executive of Standard Chartered Plc among other possible replacements. The banks declined comment or were not immediately available to comment.

All of the individuals cited by the Times declined the position, one of the two people familiar with the matter told Reuters.

"The fact is, as it stands today, Achleitner is empty-handed," said the person, referring to the bank`s chairman who would oversee the appointment of a new CEO. NO BID

Deutsche Bank under Cryan has stabilized after speculation in late 2016 that it would need a state bailout to stay afloat.

However, the enduring fragility of the bank and its low share price have generated speculation it could be a takeover candidate. But the senior executive refuted that notion.

"Nobody wants to," take Deutsche over, the banker said.

"We need to show that we can regrow the revenue base before we are attractive. And remember this is Deutsche. You cannot just bid for us."

The bank has raised capital and made progress on its two retail banking divisions. Last week, it achieved a milestone in its turnaround by floating its asset management unit, DWS.

However, stories have emerged of discord at the top.

One board member, Kim Hammonds, told leadership at a recent meeting that the bank was "the most dysfunctional company" she has ever worked for, the Frankfurter Allgemeine Sonntagszeitung quoted her as saying. INVESTORS UNHAPPY

Investors have grown increasingly jittery about the pace of the bank`s turnaround.

Michael Huenseler, head of credit portfolio management at Assenagon, which owns Deutsche Bank shares, said he and a few other investors met the bank`s finance chief in Frankfurt late last year.

"We made the point clear that we are frustrated," Huenseler said.

Since then, bad news from the bank has continued to flow and some investors are calling for a replacement for Cryan.

"I think a reshuffle at the man helm is probably the right thing to do," Huenseler said. "I don`t think Cryan is the one who has the vision to lead Deutsche Bank into the new phase."

While Achleitner has been sounding out potential candidates, he has not initiated a formal succession process with the bank`s nomination committee made up of directors.

On Tuesday, Deutsche Bank cited further progress in its restructuring by announcing the sale of its private and commercial banking business in Portugal to Abanca for an undisclosed sum.

"With the transaction, Deutsche Bank continues to execute its strategy to sharpen its focus and reduce complexity," Deutsche Bank said in a statement.

In February, Cryan said the bank was aiming for a profit in 2018 but has not been more specific.

"Investors in Deutsche Bank have had to be patient," finance chief James von Moltke told investors last week at a conference in London. "We are asking for continued patience."

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Flipkart enables voice search in Hindi, English

4th Test: Ashwin, Axar bundle out England for 205 as India take control on Day 1

MTAR Technologies IPO Subscription: Check allotment status finalisation date and how to check if you got shares

PUBG Mobile Lite 0.20.1 season 22 global update: Download APK link, check guide for global Android users

Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in infrastructure-related stocks like L&T and Adani ports

Midcap Picks With Anil Singhvi - Simi Bhaumik recommends 3 stocks for bumper returns

Ease of Living Index India: Check list - Top or bottom? Is your city on the chart?

Tier-2 & Tier-3 cities have turned into a buyers’ base in FY21; Indiamart will focus on subscriber addition in the future: Dinesh Agarwal, Founder & CEO

Exclusive: Jet Airways deal will put country's airports at risk

Rege-Jean Page, Billy Bob Thornton and Alfre Woodard join 'The Gray Man' at Netflix

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved