Deutsche Bank AG (USA) (NYSE:DB)’s new co-chief executive officer, John Cryan vowed to tackle costs and curb the trading operation formed by his predecessor. Cryan said that the company’s securities and derivatives trading segments cannot continue to take in capital. He added that the company can’t pay for luxury.
Cryan has replaced co-CEO, Anshu Jain who practiced an aggressive extension into trading activities and fixed income and formed the largest investment bank of Europe. Cryan will become the sole CEO of the bank following the retirement of Juergen Fitschen in May 2016. Deutsche Bank is planning to return to profitability by saving costs and closing businesses.
The bank assured back in April to minimize costs by a further 3.5 billion euros, lowering leverage in its investment bank by roughly 150 billion euros and offering its majority shares in its Postbank consumer division.
Cryan stated that he will postponed update regarding the plan till October this year in order to review the decisions. Earlier, the bank reported that it would offer additional information on which countries and businesses it intends to leave by the end of July.
An analyst at Independent Research GmbH, Stefan Bongardt stated that the balance-sheet decrease in the fixed income, currencies and commodities units is likely to be seen and the delay of plan is not a surprise.
Cryan said that the bank will leave the businesses with weak prospects that are not controlled to the standards they require. Cryan, who was a member of supervisory board since 2013 was named the next CEO of the Germany’s biggest bank in a shocking announcement last month. He gained investors’ trust be helping UBS Group AG that was about to collapse as CFO at the time of credit crisis during the last decade. He also performed his duties as CFO of the Swiss bank back in 2008.
