LONDON — Deutsche Bank is creating a new capital markets division as part of a restructuring of its investment banking division, Bloomberg News reported.
CEO John Cryan outlined new responsibilities for corporate and investment banking co-heads Garth Ritchie and Marcus Schenk, according to an internal email reported by Bloomberg.
Schenk will oversee client relationships while Ritchie will be in charge of market products such as derivatives, stocks and transaction banking.
Meanwhile, a new capital markets business will be set up operate as a joint-venture with the bank’s corporate finance and will have co-heads located in Frankfurt and New York, Bloomberg said.
A spokesman for Deutsche Bank wasn’t immediately available for comment.
Since taking over in 2015, Cryan has sought to restructure Deutsche Bank and adapt its business model to suit a world of low interest rates, low growth, tough capital rules and a growing threat of disruption from financial technology.
In March the bank announced an €8 billion capital raising and a streamlining of its business into three units: the corporate and investment bank, wealth management and asset management.
Cryan said at the time: “The new three-pillar structure of our operating business should position us for significant growth, both in revenues and earnings.”
But the ride has not been smooth and the investment banking arm has been hit by a series of senior staff departures in its fixed income group. Last month, John Gallo, Deutsche Bank’s US fixed income sales chief, left the bank after just 20 months in the role.
Suzanne Cain, who had been European head of debt sales, left for a role at BlackRock in February. Her departure was followed by that of Kevin Burke, who held the same role in Asia.
Deutsche Bank cut its bonus pool for 2016 performance by 80%, slashing bonuses for second straight year in a move which affected around 25,000 senior employees.
The cuts are “of course frustrating,” Karl von Rohr, the lender’s chief administrative officer, told German newspaper Frankfurter Allgemeine Sonntagszeitung in an interview.
NOW WATCH: Harvard Business School professor explains the most important problem we have in finance today and how to fix it
Business Insider Emails & Alerts
Site highlights each day to your inbox.