Exclusive Sources: Deutsche Bank CEO to Delay New Strategy

Chief Executive John Cryan will present Deutsche Bank’s new strategy only after international negotiations over new capital rules, known as Basel IV, have been settled, according to information obtained by Handelsblatt. Investors were hoping that Mr. Cryan would lay out a new strategy for the bank when he presents its 2016 earnings report in early February. Much of Deutsche Bank’s strategy, however, will depend on the rules adopted under Basel IV, according to Handlesblatt sources in the financial industry. Negotiations between U.S. and European regulators have gotten bogged down over what model banks should use to calculate their capital ratios. The United States wants to see a stricter model that would require banks such as Deutsche to maintain greater reserves. Mr. Cryan is aiming to finalize Deutsche Bank’s strategy by the annual shareholders meeting on May 18. According to Handelsblatt sources, the strategy will mainly focus on reducing the bank’s complexity by offering fewer products to fewer customers. There are no plans to withdraw from the U.S. market or shut down investment banking operations, as some have speculated, the sources said.