Article Details
  • Published Online:
    September  2024
  • Product Name:
    The IUP Journal of Business Strategy
  • Product Type:
    Article
  • Product Code:
    IJBS050924
  • Author Name:
    Syeda Maseeha Qumer and Sanjib Dutta
  • Availability:
    YES
  • Subject/Domain:
    Management
  • Download Format:
    PDF
  • Pages:
    26
Volume 21, Issue 3 & 4, September & October 2024
Can Deutsche Bank Deliver on Its Turnaround Plan?
Abstract

Since the 2008 Global Financial Crisis, banking major Deutsche Bank had been caught in a downward spiral of declining revenues, money laundering scandals, steady departure of executives, lowered credit ratings, and rising costs. In 2018, Christian Sewing (Sewing) was appointed as the CEO to turn around the ailing bank after a series of failed turnaround plans and years of losses. In July 2019, he announced a comprehensive restructuring plan called 'Compete to Win' to transform Deutsche Bank. Unfortunately, the outbreak of Covid-19 derailed Deutsche Bank's recovery plans and disrupted its restructuring targets. But, despite the challenging times, Deutsche Bank posted a net profit of EUR624 million in 2020 driven by strong gains at its investment banking division. Going forward, the challenges before Sewing were to boost growth in other areas of the bank, achieve revenue targets, sustain profits, and restore investor and regulatory confidence in the bank.

Introduction

In fiscal 2020, global banking major Deutsche Bank AG (Deutsche Bank) posted its first net annual profit (EUR624 mn) in six years, even as it navigated a companywide restructuring and looked to emerge from the Covid-191 crisis. This marked a sharp improvement in its performance as it had incurred a loss of EUR5.7 bn in 2019.