October 18, 2018
Business

Deutsche Bank lines up Christian Sewing to replace John Cryan

Deutsche Bank is set to replace chief executive John Cryan with one of his deputies, Christian Sewing according to multiple reports, with the German lenders supervisory board meeting this evening.

The bank said it will “take a decision” on the future of the chief executive today on a call led by the boards chair, Paul Achleitner, who has previously sounded out candidates at other banks.

Cryan has come under intense pressure after presiding over the Frankfurt-based lender's third consecutive year of losses in 2017 since taking over in 2015.

Read more: Deutsche Bank: Cryan finds it tough at the top of Germany's totemic lender

Sewing, who has spent his entire career at Deutsche Bank, is currently Yorkshireman Cryans co-deputy, along with fellow German Marcus Schenck.

However, Schenck, Sewings counterpart in charge of the investment bank who was seen by many in the industry as a contender for the role, will leave the bank if not made chief executive, according to Der Spiegel magazine.

Deutsche Bank declined to comment on reports on specific individuals.

New Deutsche Bank Co-Chairman John Cryan Holds First Press Conference
Christian Sewing has spent his entire career at Deutsche Bank (Source: Getty)

The elevation of Sewing, currently co-head of the private and commercial bank, comes amid questions about the investment banks performance.

The investment bank, which employs many of the 7,000 Deutsche staff in the City, has struggled to keep pace with US rivals. The bank is currently reviewing its investment bank operations, with strategy understood to be a factor in discussions.

Read more: Deutsche Bank starts hunt for successor to John Cryan

The banks investors have suffered as a result of the weak performance, with shares down by 29 per cent since the start of the year.

An announcement today would mark an abrupt end to Cryan's stint as chief executive. He was brought in in 2015 as a safe pair of hands to cut costs but has failed to turn around the massive lender.

In February the bank reported a loss of €500m (£436m) for 2017, with Cryan himself saying the results were not satisfactory. The bank's finance chief, James von Moltke, later revealed that the bank faces significant headwinds during the current financial year as well, heaping further pressure on Cryan.

The chief executive tried to get onto the front foot before the Easter holidays by insisting he was "absolutely committed" to the job and pointing out that the strategy he was following was "agreed and signed off by both the management and supervisory boards".

Read more: Deutsche Bank chief executive John Cryan insists he is not leaving

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