Market Share Decline

Deutsche Replacing Investment Bank Executive

DeutscheBankLeaving-Bloomberg
Comings and goings at Deutsche Bank are likely to continue.
  • Why it matters

    Why it matters

    The departure Karl-Georg Altenburg, a former JP Morgan banker hired 20 months ago to help Deutsche Bank turn around its European investment banking business, is apparently part of the ongoing shakeup of the bank’s top management.

  • Facts

    Facts

    • Deutsche Bank’s investment banking market share in Germany fell to 12.5 percent in the third quarter from 18.1 percent in 2014.
    • JP Morgan, once seven times smaller than Deutsche Bank in European investment banking market share, is now just 0.1 percentage points behind.
    • Six current and former Deutsche Bank bankers were charged in Britain Friday with the suspected manipulating of global interest rate benchmarks.
  • Audio

    Audio

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When Karl-Georg Altenburg came to Deutsche Bank just 20 months ago, he was full of ambition and many at the German bank had high hopes. He was “coming home” in a sense, after years at the U.S. rival JP Morgan, most recently as head of its German division.

Mr. Altenburg took on the role as Deutsche Bank’s co-chief of corporate finance in Europe, the Middle East and Africa.

A former management board member of the German bank, Robert Ranking, praised Mr. Altenburg for a “profound understanding of corporate finance in Germany.” A few months later, in mid-2014, Mr. Altenburg’s enthusiasm was unabated and he said he was moving forward with his plans for “an organizational realignment that will allow us to expand our market position in Germany.”

Reality has played out differently. Rather than increasing its market share, Deutsche Bank has lost ground to competitors under Mr. Altenburg’s leadership, despite their home court advantage. Now, Mr. Altenburg has become the latest high-profile executive to leave Germany’s largest bank, according to financial sources. The news was first reported by the German business monthly Manager Magazin.

The former mechanical engineer appears to have fallen victim to the major reorganization plans of new Deutsche Bank co-chief executive John Cryan.

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