Germany’s biggest bank disclosed a leadership change on Sunday as co-CEOs Anshu Jain and Juergen Fitschen offer to resign, upon departure, the new co-chief executive will be John Cryan.
Market reactions to the announcement were pleasing as shares in the Deutsche Bank reached a record high.
Jain and Fitschen have both directed the bank as joint chief executives since 2012. Thus, the new appointee, Cryan, will take on his new role as sole chief executive. The change also gained investor satisfaction as Deutsche Bank shares hiked to 8 percent in early trade on Monday.
Larry Fink, chief executive of BlackRock, is one of the main investors in Deutsche Bank. As a person who is in constant trade with the firm, a change in the directorial role of Jain did not seem to worry him.
“His mind is a loss to the organisation. But unfortunately the individual became the news,” he said. “There was too much conversation about him. I’m happy he did it under his terms rather than the board having to take the decision.”
Over the recent months, Deutsche Bank has been striving to maintain its flawed reputation after a series of regulatory and legal crimes such as tax evasion and money laundering. Economic burden also overshadows Europe’s largest bank as it fails to deal with stricter regulatory scrutiny and higher capital demands. Joint executives of Deutsche have missed profit targets on several occasions and have been battling with the firms lethargic share performance.
However, Cryan shows dedication to rebuilding the bank's overall performance. "Our future will be defined by how well we deliver on strategy, impress clients and reduce complexity," he said in a Deutsche statement announcing his appointment.
Cryan has been conducting business operations in the Deutsche Bank as a member of the supervisory board since 2013. Prior to his role in Deutsche, he was a former chief financial officer of rival bank UBS.
The new chief executive of Deutsche will take on his new role on July 1, once former joint CEO Jain resigns on June 30. Fitschen will not step down as soon as Jain as he is expected to leave in 2016.