New CEO John Cryan Brings a Culture Change to Deutsche Bank

当Deutsche银行本月早些时候宣布Anshu Jain和JürgenFitschen作为共同主管，德国贷款人的股票当天在投资者欢迎他们觉得的管理大修时占据了10％的百分之一天。然而，随着注意力迅速转向他们的继任者，约翰·克朗，兴奋的兴奋是短暂的。

From the moment he takes over as CEO on July 1, Cryan will be under pressure to shrink Deutsche — especially its sprawling investment banking division — in order to adapt to today’s tougher regulatory environment and boost profitability.Deutschehas been buffeted by allegations of improper behavior and agreed in April to pay $2.5 billion in fines to U.S. and U.K. regulators to settle charges of manipulating the London interbank offered rate. The bank has lagged behind European competitors such as Barclays, Credit Suisse Group and UBS in downsizing its investment banking activities.

In April, Jain and Fitschen announced a major restructuring dubbed Strategy 2020, but analysts and investors faulted the plan as being short on detail and criticized the co-CEOs for failing to get a grip on costs. As a member of Deutsche’s management board since 2013 and head of its audit and risk committees, Cryan, 54, had played a big role in drafting Strategy 2020, so he’s not exactly a new broom. But the Briton has a strong reputation as a cost-cutter, earned during a stint as CFO of UBS from 2008 to 2011, when the Swiss bank went through wrenching changes to recover from massive losses racked up during the financial crisis.

“我们预计约翰·克朗特别关注成本节约的交付，前面的德意志银行首席执行官错过了目标，”J.P.摩根银行研究负责人Kian Abouhossein，在客户的一张电话簿中写道。虽然在过去的20年里，耆那吉曾帮助在全球投资银行授权市成为全球投资银行能力，但本集团今天补充说，本集团需要一个“专注于举行的数字，”，“。

A Cambridge University graduate, Cryan began his banking career in 1987 at merchant bank S.G. Warburg & Co. in London, later spending two years as a director in the firm’s German office. When Swiss Bank Corp. acquired Warburg in 1995, Cryan ran the bank’s financial institutions group, which specialized in advising other banks on mergers and acquisitions and capital raisings. He kept that post when SBC merged with UBS in 1998. It was in this role that he advised Paul Achleitner, then COO of Allianz, on the German insurer’s acquisition of Dresdner Bank in 2001. Achleitner, now Deutsche’s chairman, recruited him to the German bank in 2013. Crucially, Cryan speaks fluent German, something that Jain never mastered.

克莱恩需要深入他的经验with bank balance sheets if he is to pacify shareholders, who were frustrated at the lack of detail when Deutsche announced Strategy 2020 on April 27. In a note to clients, Kinner Lakhani, head of European bank research at Citigroup, described that strategy as “distinctly underwhelming: a relatively unambitious 10 percent ROE target; a lack of detail on net cost savings targets; and a prolonged time horizon of 2020.”

The discontent burst into the open at the bank’s annual general meetingfine in May, when almost 40 percent of shareholders present voted against the management board. “In our opinion the development of Deutsche’s share price and the total shareholder return since Fitschen and Jain took over three years ago seem to reflect the failure” of management’s previous strategy, said Hans-Christoph Hirt, a director at Hermes EOS, an arm of London-based Hermes Investment Management that represents dissenting shareholders. Jain acknowledged the frustration at the AGM, saying, “Returns to you, our shareholders, have not been what we aimed for.”

Jain also admitted that it was taking longer than expected to resolve the bank’s legal problems, including the Libor allegations. Deutsche incurred litigation costs of €8.2 billion ($9.3 billion) since June 2012, including €1.54 billion in the first quarter of this year.

On June 1 shares in the Frankfurt-based bank were virtually unchanged from three years earlier. Over the same period Morgan Stanley’s shares have almost tripled, Goldman Sachs’ have more than doubled, UBS’s gained more than 80 percent, and Barclays’ were up more than 60 percent.

策略2020承诺简化德意志，但将使集团更加依赖于投资银行活动，与大多数欧洲竞争对手的战略转变鲜明对比。该银行将继续提供证券承销和咨询服务，现金管理，加工和贷款服务，以及资产和财富管理;但是，它将遏制证券交易活动，投资银行的传统心灵和灵魂，而是在当今监管气候中需要更多资本的区域，并且已经表现未低落。

在企业银行和证券部门，该部门拥有投资银行，德意志计划将资产负债表缩小为2000亿欧元，达到7000亿欧元，并关闭其一些低利润交易单位。预计削减将使该司的年收入减少6亿欧元，或近5％。2014年，该单位张贴了43亿欧元的税前利润，收入为137亿欧元。总体而言，银行承诺提供35亿欧元的成本节约，同时维护德意志作为全球投资银行业的主要球员。

Although investors broadly agree with the strategy, they had lost faith in the ability of Jain and Fitschen to deliver on promised cost savings.

“Deutsche has not succeeded in explaining how it will sustainably create value for investors in a changed regulatory environment,” Hermes EOS’s Hirt said in an e-mailed response to questions. “They need to succeed in doing so when re-launching Strategy 2020 in July, set clear short-, mid- and long-term targets, and then deliver against these.”

德意志银行已承诺改善其成本收益ratio to less than 65 percent by 2020 from 87 percent for 2014. It also wants to raise its leverage ratio, a simple measure of capital as a percentage of total assets, to at least 5 percent from 3.5 percent last year. The strategy calls as well for maintaining a Basel III risk-weighted common tier-1 ratio of 11 percent; the bank hit 11.1 percent on that measure at the end of the first quarter. To achieve these goals the group is looking to raise capital by spinning off Postbank, its German retail business. Former CEO Josef Ackermann led Deutsche in acquiring Postbank following the 2008–’09 financial crisis, believing it would ensure greater business balance and strengthen the group with its big retail deposit base. But Jain and Fitschen failed to extract the promised cost savings, and regulatory reforms designed to enforce greater separation between retail and investment banking undermined the merger’s rationale.

“The attraction of the Postbank deal was being able to use its deposit base, so the benefits were always more financial than operational,” wrote Citigroup’s Lakhani. “But as soon as deposits were ring fenced by regulators, that benefit was removed.” The new strategy calls for Deutsche to reduce its stake in Postbank to less than 50 percent by the end of 2016.

Under Jain and Fitschen, Deutsche had raised €24 billion in equity over the past three years, bolstering the bank’s long-lagging capital ratios but weighing on its share price. The duo also faced calls to overhaul the bank’s culture as a result of the Libor allegations.

Jain, who will leave Deutsche in six months’ time, and Fitschen, who will stay as co-CEO until May 2016, decided to step down after the rebuke from shareholders at the AGM. Deutsche had tried to avert a shareholder revolt with a hasty management revamp before the meeting. The changes included the departure of Rainer Neske, an executive once viewed as potential CEO material who ran the bank’s private banking and business clients division, including the underperforming retail business. Alan Cloete, co-head of the bank’s Asia-Pacific business and Colin Grassie, CEO of the UK operation, were also sacrificed while Jain took full responsibility for the delivery of the new Strategy.

A fixed-income specialist who spent 20 years at the bank, India-born Jain spearheaded the German lender’s transformation into a global investment banking powerhouse, with a leading fixed-income, currencies and commodities business. At its peak Deutsche would generate €13 billion a year in revenue from fixed income, currencies and commodities, but the financial crisis of 2008 –’09 made trading a less attractive business. The industry has been hit by a blizzard of new regulations that have effectively barred banks from proprietary trading and forced them to set aside much more capital for their trading activities, pressuring returns. Added to that, unprecedented levels of monetary stimulus from central banks reduced volatility in fixed-income markets, further depressing profitability.

危机已经强迫德意志的主要欧洲竞争对手，以衡量投资银行业务。瑞银通过彻底减少资产和投资银行的资产和头部计数并将集团聚焦在其资产和财富管理业务中，以2012年领先于2012年。信贷瑞士在英国保险公司审慎国的前首席执行官Tidjane Thiam将于7月1日担任首席执行官时，瑞士信贷减去了投资银行业部的资产负债表。巴克莱在监管机构和股东的压力下自2014年5月宣布新战略以来，削减了其投资银行，特别是其大型FICC业务。

Deutsche was slower to react both because of its long-standing dependence on securities trading and because Jain believed that, with rivals retrenching, the bank would be able to gain market share and reap benefits when fixed-income markets recovered. In the wake of Barclays’ retreat, Jain last year said Deutsche would be Europe’s “last man standing” in global investment banking.

jain捍卫他的记录，当他陷入困境时，指出，在他的管理层下，德意志促进了资金，并创造了一个新的司，称为资产和财富管理，为其业务的第四支柱子与投资银行，零售银行和全球交易提供了第四个柱子银行业。“银行很少均衡，因为现在，我们的所有四个业务部门都在2014年首次贡献了10亿欧元，”他在6月9日备忘录中写了一份备忘录。“我们有还解决了我们最艰难的遗产问题。虽然昂贵而困难，我们取得了重大进展。“

Analysts expect Cryan, who won plaudits atUBSfor scaling back the investment bank, to stick with Strategy 2020 rather than junking it and starting fresh. Not only did he help design the strategy, but Deutsche doesn’t have the flexibility to scale back its investment bank as radically as UBS has. The corporate banking and securities division produced 44 percent of the group’s revenue last year. The AWM division has $1.3 trillion in assets under management, trailing well behind UBS’s $2 trillion. And unlike Barclays, which has a profitable credit card and retail banking business to fall back on, Deutsche will slash its retail presence by spinning off Postbank.

“Under Cryan, we believe, the overall contours of the bank will remain unchanged,” said Lakhani. “Deutsche’s core strategic strength lies in global transaction banking and corporate banking and securities.”

Notwithstanding the strides made by Jain and Fitschen, investors expect Cryan to further boost Deutsche’s capital base. “Cryan has had a strong view on the need for balance sheet strength,” says Lakhani. “At UBS he anticipated the capital levels UBS would need even ahead of Basel III.” Deutsche will free up capital with the planned spin-off of Postbank, but Cryan could also sell the bank’s 20 percent stake in China’s Hua Xia Bank, which is valued at about $4.8 billion.

分析师还预计克氏贩地销售德意志的国际零售网络，主要在意大利和西班牙，潜在地夺取26亿欧元和28亿欧元。根据花旗集团的说法，他可能会寻求处置RREEF，本集团的房地产和基础设施基金业务，其价值在10亿欧元和15亿欧元之间。

Investors believe Cryan will be a more ruthless cost-cutter than Jain, who they felt hesitated to rein in a business he had built and staffed with key allies. “The new CEO will bring a more impartial view,” said Lakhani.

Cryan的挑战将在不破坏银行在外汇，房价和信贷方面的强大市场职位的情况下减少。他也可能投资于Deutsche的证券承保和并购咨询业务，这对银行变得更具吸引力，因为他们消耗了更少的资金。“哭是一个银行家，而不是交易者，这将是并购事业的积极态度，”金融服务招聘公司DHR国际金融服务招聘公司董事总经理StéphaneRambosson说。

德意志银行创造了43亿美元的收入等ty and debt underwriting and M&A advisory last year, according to Dealogic, ranking fifth globally with a 5.4 percent market share. That was up from $3.9 billion in 2013, with a 5.2 percent market share and sixth-place ranking.

Cryan will be looking for an early boost following a recovery in fixed-income markets brought about by an increase in volatility. “The FICC revenue pool was exceptionally low last year because of central bank stimulus, and with a potential liftoff in Fed rates, the cycle is starting to improve,” said Lakhani.

Jain will cast a long shadow, and his departure could lead to the loss of some of his loyal lieutenants, whom he nurtured during his two decades at the bank. On June 29, Henrik Aslaksen, one of the bank’s most senior deal makers and a close ally of Jain, resigned as head of global M&A after 13 years at the firm. Other Jain protégés, such as Colin Fan, a fixed-income specialist who is co-head of the CB&S division, and Michele Faissola, whom Jain picked to build up the AWM platform, could follow, posing yet another challenge for Cryan.