Christian Sewing has been a member of the bank’s management board since 2015; he was responsible for overseeing its private and commercial bank division, which includes the Postbank retail banking unit.
In a significant development, Deutsche Bank, Germany’s biggest lender, appointed Christian Sewing, a retail specialist, as its CEO CEO with immediate effect.
Sewing, a German, will replace John Cryan, a Briton, at Deutsche Bank’s helm.
Cryan, has been Deutsche’s CEO since 2015 and his mandate would have expired in 2020; however following 3 consecutive years of losses, investors lost faith in him and this led to the current scenario.
“Following a comprehensive analysis we came to the conclusion that we need a new execution dynamic in the leadership of our bank,” said Deutsche Bank’s Chairman, Paul Achleitner, in a statement.
Sewing, 47, has a background in retail banking, auditing and risk management. His promotion to the top most job comes at a time when key staffs have defected, revenues have slumped as a result of which shareholders and investors are debating which path Deutsche Bank’s investment banking unit should take.
Sewing’s appointment possibly hints at a stratgic shift in Deutsche: the bank is possibly moving away from a profit seeking growth through investment banking to one where bankers can exert a significant influence.
As per two sources familiar with the matter at hand, at a hastily drawn meeting on Sunday, Sewing’s candidacy emerged as the most preferred option although a second external candidate’s name was also proposed.
Cryan will leave Deutsche at the end of April 2018.
In a statement, a spokesperson for Deutsche stated, Garth Ritchie and Karl von Rohr will serve as deputy CEOs while Marcus Schenck, who was co-deputy CEO, will also leave the bank.
Sewing’s appointment comes at a time when the bank is facing heightened competition at home and abroad midst increasing regulations.
As per an investor who spoke on the condition of anonymity, “Our view is that Sewing seems to be an OK candidate”.
As per Ingo Speich, a fund manager at Union Investment, “Mr. Sewing urgently needs to bring a sense of calm back to the bank”.
According to Octavio Marenzi, CEO of consultancy Opimas, Sewing’s appointment will mean a greater focus on commercial and retail banking and wealth management.
“It looks like the board of directors is capitulating on the investment banking front,” said Marenzi.
($1 = 0.8143 euros)