Deutsche Bank overhauls board as U.S. head Riley joins Santander By Reuters

By Tom Sims

FRANKFURT (Reuters) – Deutsche Bank (ETR:) is undertaking its biggest management shake-up since 2019, the German bank said on Wednesday as it announced the departure of Christiana Riley, who oversaw its U.S. operations.

Riley’s exit to join Santander (BME:) follows news last week that Deutsche’s co-deputy chief executive Karl von Rohr was also leaving, and the restructuring marks the first major overhaul of the bank’s board under Chairman Alex Wynaendts.

“It is time to focus the management board on the next phase of the bank’s growth strategy, which is now more than ever about sustainable profitability, efficiency and effective controls,” Wynaendts said.

Under the leadership of Chief Executive Officer Christian Sewing, Deutsche has spent the past few years raising profitability by cutting costs and jobs after years of losses at the bank.

Deutsche, which ranks as one of the world’s most systemically important banks, is expected to report an 11th consecutive quarter of profit on Thursday.

Riley, with Deutsche since 2006, was one of two women on Deutsche’s 10-member board, which will now consist of only nine people – eight men and one woman – in what Deutsche said would be a “leaner” team.

Stefan Simon, who currently oversees legal and compliance, will take on the Americas portfolio and relocate to New York. The former lawyer and tax consultant joined Deutsche’s management team from its supervisory board in 2019.

Deutsche, which has faced big fines for regulatory lapses over the last decade, said that a focus for Simon will be meeting regulatory requirements and establishing “a state-of-the-art risk and controls culture”.

Claudio de Sanctis, a Deutsche veteran who has overseen wealth management, will join the board to oversee the retail bank, Deutsche said.

And Chief Financial Officer James von Moltke, who was promoted last year to co-deputy CEO, will take on oversight of asset management, which includes its DWS fund management business.