Deutsche Bank shares rose more than 3 percent as investors welcomed Chief Executive John Cryan's plan to restructure the German bank, cull managers and put past scandals behind it. Ivor Bennett reports.
Known for his ruthless efficiency, John Cryan is certainly living up to his reputation. Deutsche Bank's new boss announcing a radical restructuring plan in which it seems nothing, and no one, is safe. The investment bank is the first main area of overhaul, being split into two. Sales and trading on one side, corporate and transaction banking operations on the other. Baader Bank's Robert Halver. (SOUNDBITE) (German) HEAD OF CAPITAL ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "He did exactly the same thing at UBS and today, UBS is a lot stronger. So Deutsche Bank should be thankful for a such a new boss." Deutsche Bank's shares rose more than 3 percent in early trading on hopes that Germany's biggest lender is finally turning a corner. Costly litigation from a series of scandals has pushed its valuation well below that of its rivals. UBS for example well ahead with their restructuring. While shareholders at Deutsche Bank face a possible dividend cut after a record pretax loss in the third quarter of over 6 billion euros. If profitability is one challenge, so too is reputation. One that Cryan isn't afraid to tackle. Colin Fan, the bank's co-head of securities trading, is one of four senior figures on their way out. IG's Chris Beauchamp says there will be more. SOUNDBITE (English) CHRIS BEAUCHAMP, MARKET ANALYST, IG, SAYING: "They'll see which areas are working well, which areas aren't, and they'll need to make those changes. So we should be braced, I think, for a fresh round of losses at Deutsche as they really start to realign themselves after what's been a difficult three years." One area for the chop is Deutsche's low-profit retail arm Postbank. By offloading that and other businesses, it's thought job losses could total more than 20,000.