Shares in Deutsche Bank climbed sharply yesterday after its co-chief executives agreed to stand down over the weekend, to be replaced with a turnaround veteran.
But analysts and investors said that the hard work still lies ahead of the bank, which will have to prove to investors that it can cut costs and grow profits after several disappointing years.
Co-chiefs Anshu Jain and Jurgen Fitschen are leaving after three years at the top. They will be replaced by former UBS finance boss John Cryan. Shares in the bank climbed by seven per cent in early trading, before settling back to close the day up 3.2 per cent.
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“We expect John Cryan to focus in particular on delivery on cost savings with the previous CEOs having missed targets – investors need to see evidence on cost management – John Cryan has a proven track record in turning UBS around as its CFO and is highly regarded by the market in our view,” said JP Morgan analyst Kian Abouhossein.
Hans-Christoph Hirt from investor Hermes welcomed the change: “It had become increasingly apparent in recent months that refreshment at the top of the management board was necessary in order to regain trust.”