Deutsche Bank shares are trading in the red Thursday, as the German bank announced its Chief Operating Officer, Kim Hammonds, is set to leave the business in May. The move comes soon after the replacement of CEO John Cryan by Christian Sewing.
By 1310 BST, Deutsche Bank shares were 0.99% lower at €11.61. The stock has been moving in a generally downward direction for some years now, as the bank struggles to restructure and generate the profits and innovation investors seek.
New leadership team for Deutsche Bank
Hammonds has been with the German institution since 2013 and became COO in August 2016. She is considered an ally of Cryan, suggesting this departure isn’t wholly unexpected.
“Kim Hammonds has been a breath of fresh air, bringing an outsider’s perspective with deep experience in transformational change” said Paul Achleitner, Chairman of the Supervisory Board. “She has built the digital, data and security platforms which are strong foundations for our company.”
New CEO, Sewing was equally generous in his praise of Hammond: “She has hired and promoted outstanding people – we can build on them as we continue modernising the bank’s IT and accelerating digitalisation,” Sewing said.
A new COO is set to be nominated “in the near future,” Deutsche Bank said.
End of an era
The news of Hammonds departure comes just a couple of weeks after Sewing was named as the new CEO of the struggling bank. Cryan had been working hard to implement a credible restructure plan for the bank, but the signs were that it wasn’t working quickly or well enough.
The announcement of Sewing as a replacement for Cryan came soon after news the investment bank was actively recruiting a new CEO.
“Despite his relatively short tenure as CEO, John Cryan has played a critical role in the almost 150-year history of Deutsche Bank – and laid the groundwork for a successful future of the bank,” Achleitner said of the leadership change earlier in April.
“However, following a comprehensive analysis we came to the conclusion that we need a new execution dynamic in the leadership of our bank,” he added.