Deutsche CEO struggles to turn bank around as stock slumps
Frankfurt — Deutsche Bank CEO Christian Sewing gave himself one year to turn around the lender. Six months into his tenure, urgent questions about the future are becoming louder as the stock slumps to record lows. After disappointing investors by posting the lowest third-quarter revenue in eight years and abandoning some targets, the stock rout worsened, producing Deutsche Bank’s worst week since late March. Contraction at the investment bank, the biggest contributor to the top line, and failure to reinvigorate growth are adding to signs Sewing is struggling to stop the decline. “The appalling year-on-year trends in sales and trading seem to confirm what we have feared for some time: the franchise has been hurt by cost-cutting,” Kepler Chevreux analysts led by Jaques-Henri Gaulard said on Thursday. “Even though the restructuring program seems to be on track, it will not be enough.” The stock’s decline limits Deutsche Bank’s strategic options for now, though it could accelerate the p...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.