Deutsche bank has now appointed a new young and talented 25-year-old Mr. Sewing as the CEO by replacing John Cryan.
The former CEO has faced severe financial difficulties, gone through the restructuring process of the bank and unfortunately hardly noticed any sort of improvement in its financial health.
However, it is believed that the newly emerged fresh talent as the CEO is someone who can completely change the fate of this bank which the former CEO cum investment banker could not do.
Early on Monday 9th of April the shares of Deutsche bank experienced a gain to the extent of 3%.
Al though the percentage of gain is very less, yet it’s a positive comfort over the huge loss of 50% of stocks since July 2015.
Gradually this got down the trust of the investors too.
But the new veteran is seeming to build back the trust of his investors.
According to some expert’s analysis, Deutsche bank lacked a proper direction in its business.
Therefore, now the most important challenge and task to be done by the bank is to identify what it wants to do, where it wants to go and how. It needs to shape its strategic direction and thereby its implementation.
UBS analysts said that Sewing’s first statements “do not indicate major strategic shifts,” but they do expect “further adjustments” for the investment bank.
Deutsche bank has not made any profits since past three years. Now there’s a big question mark as to how it is going to deal and fight with its rivalries when the corporate and investment banking has contributed 54% of the total revenue in the year 2017.
“The [investment bank] strategy remains the key strategic question mark and Achilles’ heel of Deutsche,” wrote analysts at UBS.
Sewing wants to first analyse and study the market at present and then adapt to the changes and develop a cost, revenue and a capital structure.
Al though Sewing is all set to execute many changes yet, it shall take a lot of time for the bank to first recoup with the fallout of the 3rd CEO in just six years.