True to its name, Deutsche Bank, the “German Bank,” is undergoing a fundamental restructuring – in a very German manner. It has a plan, it is a good plan, and it will be methodically executed, step by plodding step. And no one can tell them anything different.
“We have to do what we consider to be right for the bank in the long term,” Marcus Schenck, co-head of Deutsche’s corporate and investment bank (CIB), said in an interview. “Our task is not to maximize results on a short-term basis of one or two quarters.”
That’s absolutely right, agreed Garth Ritchie, his colleague at the head of CIB. “If we see our strategy through consistently, shareholders will also reward this,” Mr. Ritchie said in the first joint interview of the two managers since they were put in charge of the division in July. “Perhaps only after a slight time lag, but we are not going to take a supposed shortcut that is going to deflect us from the right path.”
Their message for investors, clients, partners: Be patient. How patient? Just two or three years – if all goes according to plan, if markets cooperate, if enough talented people are willing to go through some hard years with little or no bonus.