When John Cryan started his new job at Deutsche Bank in early July, he offered employees a tough reality check. In a letter to staff, the new chief executive of Germany’s largest financial institution said the bank was inefficient and its business model too complex.
His prescription: A tough austerity program over the next five years.
Solid restructuring is part of Mr. Cryan’s managerial DNA, which he honed as finance chief at Swiss bank UBS before moving to Frankfurt.
The good news is that, even as Deutsche Bank reduces its presence in investment banking and closes some retail branches, it will invest in other growing areas as part of a “Strategy 2020.” Two areas deemed promising are its global transactions and asset management businesses.
The two business fields will probably help Mr. Cryan present upbeat figures next week when he unveils the bank’s second-quarter financial results on July 30.
A planned conference call with investors to present the results will mark a debutant ball debut of sorts for the British banker, who is co-chief executive with Jürgen Fitschen until Mr. Fitschen steps down in May next year.
The event next Thursday will be the first time investors hear publicly from the man who replaced the former co-chief executive, Anshu Jain, and to ask direct questions of Mr. Cryan about the bank’s strategy going forward. The press will have to wait for their own chance, as no press conference is planned.