Deutsche Bank AG CEO Christian Sewing will soon be relinquishing his position as the company’s top investment banker. Board member Fabrizio Campelli is the most promising candidate as the new head of the division, reports Bloomberg. Germany’s largest bank is preparing to appoint a new top banker to allow Sewing to concentrate fully on his CEO job. A decision can be expected in the next few months. In addition to the Chief Transformation Officer Campelli, US boss Christiana Riley and Asia boss Alexander von zur Mühlen are said to be in the race.
Sewing took on the dual role of CEO and head of investment banking in 2019 when the bank withdrew from stock trading and downsized the division in general. The banking supervisory authority quickly made it clear to Sewing that they would rather see him relinquish the additional responsibility. This view has not changed even after the successful year 2020 for the division, it said.
The handover would come at an opportune time. The division’s earnings rose by almost a third last year, driven by the volatility of the markets in the Covid-19 pandemic. Both the bond trading, led by Ram Nayak, and the underwriting business under Mark Fedorcik did well during the crisis.
That raises the bar for the new head of the investment bank. While the division has got off to a good start this year too, the bank expects earnings to decline from last year.
The investment bank has become an increasingly important part of Sewing’s turnaround. The CEO, who himself comes from the corporate customer business, had initially planned to cut back the business. He changed the line when it became clear that negative interest rates would drag the other businesses longer. (aa)
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