New Deutsche Bank CEO Christian Sewing says the company will have to "take tough decisions and execute them". Picture / AP
New Deutsche Bank CEO Christian Sewing says the company will have to "take tough decisions and execute them". Picture / AP
Deutsche Bank, which has been battling heavy financial losses, announced that its chief executive officer will leave within weeks and is being replaced by a long-time executive known for his leadership skills.
The bank's supervisory board said CEO John Cryan, who took over in 2015, will leave at the endof April. It said it had appointed Christian Sewing the new CEO with immediate effect.
Sewing told employees that Germany's biggest lender faced "tough decisions" as it worked to return to profit.
Sewing, who has worked for Deutsche Bank for all but two years since 1989, was appointed to replace Cryan after three years of losses. Sewing acknowledged in a message to employees that Cryan "led us through an extremely difficult period" and many "greatly appreciate" him.
Sewing said that "we want to and have to become profitable again."
He added that there may sometimes have been good reasons for missing cost and revenue targets but it was damaging to the bank.
He wrote: "The new leadership team will not accept this anymore. We'll have to take tough decisions and execute them."
Deutsche Bank had confirmed that its supervisory board would have a discussion on the CEO position. The chairman of the supervisory board, Paul Achleitner, said Sewing, in his more than 25 years at Deutsche Bank, had "proven himself a strong and disciplined leader".
"The Supervisory Board is convinced that he and his team will be able to successfully lead Deutsche Bank into a new era," Achleitner said in a statement. "We trust in the great ability of this bank and its many talents."
Sewing had been a member of the German bank's management board since January 2015 and was appointed as president in March 2017.
The supervisory board also appointed management board members Garth Ritchie and Karl von Rohr as new presidents.
Achleitner thanked Cryan, the departing CEO, saying he had "played a critical role" at the bank during his brief tenure.
"The Supervisory Board in general and I personally are grateful for this," he said. "However, following a comprehensive analysis we came to the conclusion that we need a new execution dynamic in the leadership of our bank."
Deutsche Bank's supervisory board said CEO John Cryan, who took over in 2015, will leave at the end of April. Picture / AP
Cryan took over in July 2015 after the previous co-CEOs, Anshu Jain and Juergen Fitschen, stepped down as the bank struggled with uneven profits that were repeatedly eroded by funds set aside for litigation expenses.
Cryan pushed to cut costs, streamline computer systems and leave less profitable businesses and regions. Still, progress in improving Deutsche Bank's earnings has been slow amid low interest rates that squeeze lending margins and reduced income from trading stocks and bonds.
Deutsche Bank lost 735 million euros ($1.2b) last year and declared a small dividend of 11 euro cents per share.
Rumors that Cryan might be replaced after three years of losses had swirled for weeks. Before becoming CEO of Germany's biggest bank, the Briton served as president for Europe at the Singaporean investment company Temasek and as chief financial officer of Swiss bank UBS.
Sewing heads Deutsche Bank's private and commercial bank division and has worked in Frankfurt, London, Singapore, Tokyo and Toronto.
