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Brand of the Day Bank

Brand of the Day: Deutsche Bank

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By Nesh Pillay, Reporter

June 8, 2015 | 3 min read

Welcome to Brand of the Day, where we pick the company making headlines for the day and explain five elements you need to know about what has happened for them to be in the news.

Today we feature Deutsche, a global banking company whose co-chief executive officers (CEO) have resigned, leaving behind quite a mess for the bank’s new leader.

1) The bank

Deutsche Bank is an international banking institution that was born in Berlin in 1870. It has survived and sometimes thrived through much of history’s most tumultuous periods, including the rise and fall of Hitler. However, it wasn’t listen in the US stock exchange till 2001.

2) The old CEOs

Jürgen Fitschen and Anshu Jain are the bank’s co-CEOs. Many investors criticized their ability to run the institution as Jain doesn’t speak enough German to properly communicate with employees and Fitschen currently faces perjury charges, unrelated to banking. Jain will leave his role at the end of this month, and Fitschen will follow suit, stepping down next May.

3) The cost-cutting

Under Fitschen and Jain, the bank saw many problems. It reported that its earnings were sliced in half during its first quarter this year. In addition, it owes the US government $2.5bn after it was found that it may have toyed with interbank interest rates. To get out of these messes, the bank announced last month that it would cut costs by $3.8bn by selling Postbank and shrinking its securities.

4) The new CEO

British businessman, John Cryan, is set to take over as Deutsche’s CEO. Cryan formerly handled financials at UBS where he restructured the struggling bank and wrote off $50bn during the 2008 financial crisis.

5) The future

Cryan faces a tall-order. He is tasked with the daunting task of reigning in the bank’s costs in order to help it achieve profitability in the long-term. It seems investors are confident in the new CEOs ability to do this however, as share rose by seven per cent once his appointment was announced.

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