Deutsche CEO Christian Sewing has stated "We are doing what is necessary to unleash our true potential...We are building on our strengths. This is a restart for Deutsche Bank".
Sewing replaced outgoing German-speaking British Chief Executive John Cryan on 8 April 2018. One year into the CEO role Sewing has unleashed a radical restructure of the Deutsche Bank.
New Board members effective 1 August 2019 will be ex-McKinsey consultant Christiana Riley, Bernd Leukert who is a member of the Supervisory Board of Bertelsmann SE and held various executive roles at SAP and Stefan Simon, a lawyer, bringing experience in corporate law, corporate governance and compensation oversight (he is also an honorary professor at the University of Cologne).
A major part of the restructuring will be exiting the Equities Sales and Trading business and reducing capital consumed by the other businesses especially Rates. A preliminary agreement has been struck with BNP Paribas to provide continuity of service for electronic equities clients with a view to moving technology and staff across in due time. Deutsche's electronic equities and prime brokerage is mainly US-based. Several hedge funds have pulled out of Deutsche's prime business following a series of fines.
As part of the "restart", 74 billion euros of risk-weighted assets will be moved into a Capital Release Unit (CRU) for wind-down. A new CET1 target ratio of 12.5% has been targeted along with a fully loaded leverage ratio of 5% from 2022. There will also be a reduction in headcount by 18,000 full time employees. 13 billion will be invested in technology in the next three years.
Sewing replaced outgoing German-speaking British Chief Executive John Cryan on 8 April 2018. One year into the CEO role Sewing has unleashed a radical restructure of the Deutsche Bank.
New Board members effective 1 August 2019 will be ex-McKinsey consultant Christiana Riley, Bernd Leukert who is a member of the Supervisory Board of Bertelsmann SE and held various executive roles at SAP and Stefan Simon, a lawyer, bringing experience in corporate law, corporate governance and compensation oversight (he is also an honorary professor at the University of Cologne).
A major part of the restructuring will be exiting the Equities Sales and Trading business and reducing capital consumed by the other businesses especially Rates. A preliminary agreement has been struck with BNP Paribas to provide continuity of service for electronic equities clients with a view to moving technology and staff across in due time. Deutsche's electronic equities and prime brokerage is mainly US-based. Several hedge funds have pulled out of Deutsche's prime business following a series of fines.
As part of the "restart", 74 billion euros of risk-weighted assets will be moved into a Capital Release Unit (CRU) for wind-down. A new CET1 target ratio of 12.5% has been targeted along with a fully loaded leverage ratio of 5% from 2022. There will also be a reduction in headcount by 18,000 full time employees. 13 billion will be invested in technology in the next three years.
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