Deutsche Bank cuts top leadership amid extensive overhaul

Several senior executives are expected to depart as part of the reshuffle at Germany’s biggest bank

FILE PHOTO: The Deutsche Bank headquarters are pictured in Frankfurt, Germany, April 25, 2019. REUTERS/Ralph Orlowski/File Photo
Beta V.1.0 - Powered by automated translation

Deutsche Bank's radical overhaul is slowly taking shape, with a cull of top leadership and better visibility on how many jobs will be cut and how big its non-core bad bank unit will be.

Several senior executives are expected to depart as part of the reorganisation, including Yanni Pipilis, the global head of fixed income, and James Davies, head of debt in the Americas, according to sources. Neither could be reached for comment.

The German lender has already said investment bank chief Garth Ritchie is leaving, and the departure of two fellow board members – retail head Frank Strauss and chief regulatory officer Sylvie Matherat – could be announced as early as Sunday, with as many as two new members added. A spokesman for Deutsche Bank declined to comment.

About €75 billion (Dh309.4bn) – and maybe as much as €80bn – of risk-weighted assets will form the basis of bad bank, a source said. At the higher number, that is the equivalent of about a quarter of Deutsche's total balance sheet.

The restructure will also involve executives below the management board level. Stefan Hoops will be promoted to head a new division, probably comprised of the transaction bank and the lender’s commercial-clients unit, and Mark Fedorcik will oversee the investment bank.

Chief executive Christian Sewing is poised to announce the largest restructuring in at least a decade on Sunday. Along with deep cuts to the investment bank, it will also involve reorganising the company’s divisions to boost the profile of the transaction bank as well as a shake-up of the management board.

Job cuts across the business are now expected to total 18,000 to 20,000, narrower than the earlier reported range of 15,000 to 20,000.

Mr Strauss has been on Deutsche Bank’s management board for just less than two years. He was previously chief executive of Postbank, a German subsidiary of Deutsche Bank that it previously wanted to sell but decided to keep in 2017. Karl von Rohr, the chief administrative officer, is expected to take over some of Mr Strauss’s responsibilities.