Deutsche Bank has sacked its British boss, John Cryan, following a boardroom battle over the firm’s declining turnaround effort.
The lender has now promoted Christian Sewing, the head of its private and commercial banking division, as new CEO. Garth Ritchie has also been announced as President and sole head of its investment banking arm. Dr Marcus Schenck will also leave his role as President – Co-Head of Corporate & Investment Bank.
John Cryan will leave his post at the end of this month.
Chairman Paul Arcleitner said a change of leadership was needed after “comprehensive analysis” was undertaken.
The outgoing CEO was only in his post for three years. His departure was as a result of the German investment bank’s declining revenue in its investment banking division and also a cost-cutting plan that went amiss.
This departure is Deutsche Bank‘s third change in the leadership position over the last six years.
Christian Sewing has been with Deustche Bank since 1989 and will look to overturn its fortunes; its share price has dropped 55% under Cryan’s stewardship. His initial contract was until 2020.
In 2017 Deutsche Bank racked up a third-consecutive loss. It would have returned to profit, however, if it wasn’t for a one-off charge of €1.4 billion (£1.2 billion) due to Donald Trump tax reforms.
Not only this but a huge decline has occurred in the investment baking industry as a whole, slowing down potential clients and cash flow.