FRANKFURT—German lender Deutsche Bank AG opened its
annual general meeting Thursday by appealing for shareholders to be
patient as it strives to overhaul a business culture that has cost
it billions of euros in fines and to boost lagging
profitability.
At the start of what is expected to be a contentious gathering,
co-chief executive Anshu Jain said: "Resolving legacy litigation
matters has taken longer, and been very costly...be assured: we are
doing everything we can to resolve the outstanding issues."
His statement follows a management shuffle announced late
Wednesday that will give Mr. Jain more power. The former head of
investment banking will now also be responsible for the bank's
strategy and its aim to boost its relatively weak profitability.
"The implementation of the strategy is now in focus, Mr. Jain is
now responsible for this," said Paul Achleitner, chairman of
Deutsche Bank's supervisory board.
Mr. Jain admitted Thursday that he was dissatisfied with cost
savings delivered so far and pledged to make that a top priority in
coming years.
He aimed to assuage investors who criticized Deutsche Bank's new
strategy announced in late April for lacking detail on its
cost-savings targets and which they claim may take too long to
yield results.
Fund manager and Deutsche Bank shareholder Ingo Speich of Union
Investment urged the bank on Thursday to speed up the process,
saying "the time of excuses is over. You need to deliver now." He
said his fund will vote against approving management actions last
year. The vote is symbolic rather than binding but failing to get
approval would be regarded as a slap in the face for
management.
Mr. Speich's comments echo those of other large shareholders who
have become impatient with the top management following the
strategy presentation and after the bank paid $2.5 billion to
settle allegations by U.S. and U.K. authorities related to the
rigging of the London interbank offered rate, or Libor.
Hans-Christopher Hirt of U.K. investor Hermes said Wednesday,
"we urge the bank's supervisory board to review the composition of
the management board, taking its performance over the last three
years and its new strategy into account."
Deutsche Bank late Wednesday announced a management board
shuffle that will strengthen Mr. Jain's position and see the
departure of retail chief Rainer Neske. Mr. Neske will be replaced
by Christian Sewing, who assumes his new role in addition to his
duties as head of legal. Mr. Sewing became a board member at the
bank's last management revamp in October.
Deutsche Bank made too little progress in its attempts to make
cultural changes in its business after paying €8.7 billion
($9.7 billion) in settlements and litigation charges over the last
three years, Union Investment's Mr. Speich said.
Write to Eyk Henning at eyk.henning@wsj.com
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