Deutsche Bank's CEO, Christian Sewing, has boldly shifted the bank's strategy from a defensive stance to an offensive one, setting ambitious new goals for the next three years. This move is a crucial step in Sewing's mission to restore Deutsche Bank's reputation and competitiveness, especially in the face of Wall Street's giants.
A New Offensive Strategy
Sewing, who has successfully stabilized the bank after years of losses, now aims to achieve a return on tangible equity of over 13% by 2028. This target is in line with BNP Paribas but falls short of UBS's 18%. Additionally, Deutsche Bank plans to increase its revenue to approximately €37 billion by 2028, a significant jump from the current €32 billion.
But here's where it gets controversial: some investors criticize Deutsche Bank for relying too heavily on its global investment bank and neglecting its retail division. Sewing's response? He aims to diversify and strengthen the bank's culture, moving away from the 'mercenary-style' investment bank model.
A European Champion?
Sewing's vision is ambitious: to make Deutsche Bank the European champion. However, he faces significant challenges. Banking in Germany remains difficult due to stringent regulations and intense competition. Despite these hurdles, most analysts believe Deutsche Bank will meet its current three-year plan goals.
And this is the part most people miss: the bank's latest plan, unveiled on November 17, 2025, is less sweeping than Sewing's initial strategy overhaul in 2019. That earlier plan included downsizing the investment bank, focusing on corporate clients, and promising to cut 18,000 jobs. However, as business rebounded, the bank didn't need to make such drastic cuts.
In its expansion push, Deutsche Bank plans to hire over 60 senior investment bankers, focusing on sectors like healthcare and technology. This move is part of the bank's strategy to increase its revenue and market share.
Despite the bank's recovery and progress, investors have shown nervousness at times. A notable example is the 15% drop in Deutsche's shares in 2023, triggered by bank rescues in the US and Switzerland. This turmoil led to a rare intervention by Germany's then-Chancellor Olaf Scholz, who assured the public that there was no cause for worry.
So, what's your take on Deutsche Bank's new offensive strategy? Do you think Sewing's vision will make Deutsche Bank the European champion, or are there too many challenges ahead? Share your thoughts in the comments below!
