Deutsche Bank Halts Rally Progress Due to Remaining Absences
Deutsche Bank, one of Germany's leading financial institutions, is set for a new strategic direction following the departure of its current Chief Financial Officer, James von Moltke, in the first half of 2026. Raja Akram, currently responsible for the finance department at Morgan Stanley, will succeed von Moltke on October 1st, ensuring a smooth transition.
In the coming years, Akram will be responsible for the implementation of the new strategy at Deutsche Bank alongside CEO Christian Sewing. The expected strategy is likely to continue focusing on rigorous cost management, maintaining strong capital positions, and delivering revenue growth, in line with the current strategic trajectory under von Moltke.
James von Moltke emphasised the commitment to cost controls, investments in strategic areas, and a strong capital position. He planned capital distributions and returning excess capital when CET1 ratios exceed 14% sustainably. This suggests that Raja Akram will likely inherit a well-capitalized bank focused on balancing growth with prudent risk and cost management.
While there are no detailed public statements specifically outlining Raja Akram’s new strategy upon joining, the current emphasis suggests continuity rather than radical strategic shifts in the short term. The strategy is expected to revolve around continuing cost efficiency and rigorous cost management programs, maintaining or improving the strong capital base, driving revenue growth through diversified, complementary business lines, managing asset quality amid macroeconomic uncertainties, and potentially reinforcing leadership and structural stability to offset recent senior departures.
Deutsche Bank's stock has already shown promising signs, breaking through the 30.00 euro mark and currently performing at 84.5 percent. The bank ranks fourth in the leading index and is in the top three in the Euro-Stoxx-Banks sector index. Historically good numbers and a re-rating of the long-term fundamental undervaluation have given Deutsche Bank's price a significant boost.
As the strategy at Deutsche Bank will be further developed beyond the year 2025 in the next quarters, it is likely that a different topic will drive the price of Deutsche Bank in the coming quarters. Existing investors in Deutsche Bank should stay the course, and weak days could be an opportunity for new entries. For those interested, the WKN for Deutsche Bank is 514000.
Interestingly, other German banks are also performing well. Commerzbank's shares have more than doubled, with a performance of 120 percent, and Rheinmetall's shares have more than doubled, with a performance of 154 percent. The DAX is on track for a strong year after seven months, with the German economy showing signs of recovery.
In conclusion, Deutsche Bank is poised for a promising future under Raja Akram's leadership. The focus on cost efficiency, revenue growth, and maintaining a strong capital base is expected to continue, providing a stable foundation for the bank's growth. As the strategy develops, investors will be watching closely to see how Deutsche Bank navigates the economic landscape and continues to grow in the coming years.
- Raja Akram, as the new Chief Financial Officer at Deutsche Bank, is expected to continue the strategic trajectory set by his predecessor, focusing on cost management, maintaining a strong capital position, and delivering revenue growth, as announced in the upcoming strategy.
- With the new strategy at Deutsche Bank, investors are anticipated to pay close attention to the bank's progress in cost efficiency, revenue growth, and maintaining a solid capital base, as these areas remain a key focus under Raja Akram's leadership, offering a stable foundation for the bank's future growth.
