Deutsche chief to buy shares amid turmoil

Deutsche Bank's chief executive said he will put his money where his mouth is, committing to invest his own salary in a bid to turn the institution around.

Speaking to analysts and shareholders yesterday, Deutsche chief Christian Sewing said: "No-one is more disappointed than I am about our share price."

The share price tanked following news that tens of thousands of jobs would go as part of a global restructure.

While he believes the deep cuts and radical restructuring of Deutsche he is helming will turn the share price around, Sewing said he will invest a significant portion of his wealth in the bank.  "I've decided to invest a substantial amount of my fixed salary over the next years," Sewing said.

"I am personally putting my money where my mouth is."

Sewing stepped into the chief executive role at Deutsche in April last year, though he describes himself as a "Deutsche-lifer" having had a 30 year career at the bank.

His total remuneration for last year came to about €7 million.

Sewing also released a video aimed at employees and shareholders, discussing the radical transformation and job cuts that have started at the bank.

Speaking with Jorg Eigendorf, Sewing said of the new strategy: "I'm already in phase two. Phase two is about not being worried but being excited. I'm excited about execution."

Eigendorf asked whether the bank exiting global equities and making the cuts means a farewell to Wall Street for Deutsche, but Sewing was adamant that isn't the case.

"We want to put the resources where we can win... and we will do that globally. We will have $5 billion in revenue in the US, the US is the second most important country after Germany," Sewing said.

"We will grow in Asia but saying goodbye to Wall Street is the wrong assessment. We will be strong in the US, but more focussed. "

Eigendorf argued that employees are tired of restructuring and asked Sewing: "Thousands of people will be made redundant, why is this necessary?"

To which Sewing replied: "Well, this is the bitter part and obviously the part which is the most difficult for us on the management board. However, I think we should be transparent. We should be honest. If we exit businesses ­­- and we have to exit businesses - if we trim certain businesses then this has an impact on the employees."

He added: "Exiting businesses, investing in technology and making infrastructure more efficient is obviously having an impact on the overall number of employees. But we will deal with it with all diligence, all duty and obligations like we have done in the past."

Sewing maintains that leadership at the bank will be able to create larger profits - repeatedly stating that the newly restructured leadership team at Deutsche is diligent and disciplined.

"We listen to the market, the market always said that our leverage ratio is too low and we need to do something. We are listening, we are understanding," he said.

He added that the restructure is not happening at a cost to shareholders, saying: "For the first time in six years we are not asking the shareholder for capital, we are doing it by ourselves. At some point in time, we will return capital."

Read more: Deutsche BankChristian SewingJorg Eigendorf
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