Frankfurt: Deutsche Bank is splitting its investment bank into two separate units as part of a broad strategic overhaul of the lender launched by new chief executive officer John Cryan.
Germany’s flagship bank said on Sunday the sales and trading activities of its Corporate Banking & Securities (CB&S) unit would form a new business division called Global Markets.
The investment bank’s corporate finance business as well as its Global Transaction Banking (GTB) operation will be combined in a new Corporate & Investment Banking unit.
The investment bank co-head Jeff Urwin will join the management board to head the new Corporate & Investment Banking unit, while co-head Colin Fan will resign.
The name “CB&S” will cease to exist.
As the new CEO is accelerating plans to shed assets and shrink the bank, he is also implementing a sweeping overhaul of the bank’s management structure.
Cryan is under pressure to clean up the bank, which earlier this month announced a record pretax loss of €6 billion ($6.81 billion) in the third quarter and warned of a possible dividend cut.
Deutsche Bank is setting up an organisation that will have all four of its main business divisions represented directly on the management board and will abolish its second-tier group executive committee.
As part of the changes, Garth Richie, currently head of equities, will take on management board responsibility for the new global markets unit.
Quintin Price, a former Blackrock manager, will join the Management Board to lead Deutsche Bank’s Asset Management business, while the current head Michele Faissola will leave the bank.
Stephan Leithner, Stefan Krause and Henry Ritchotte are also resigning from the management board. Krause is leaving the bank, Leithner is taking on a role at buyout group EQT, while Ritchotte will be tasked with setting up a new digital bank for Deutsche Bank. Reuters
