John Cryan is facing increasing skepticism he can revive growth at Deutsche Bank as the firm struggles to win back clients and market share after last year’s slump.
Bloomberg News reports that Deutsche Bank had its long-term credit grade cut one level by Fitch Ratings late Thursday, which said the bank will take longer to revive growth under a turnaround plan unveiled in March. That came a week after Autonomous Research LLP said the bank may be “beyond repair” unless there’s a “miracle” boom at its once-mighty bond-trading business.
Cryan is struggling to boost earnings as the Frankfurt-based lender undertakes its third revamp in as many years. The CEO brought the bank back from the brink in late 2016 by settling misconduct lawsuits and raising 8 billion euros. His plan to restore “modest growth” by pivoting Europe’s largest investment bank to corporate clients and emphasizing its German roots was thwarted when the lender suffered its weakest revenue in 3 1/2 years in the second quarter.
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