REPORT: 'Dysfunctional' Deutsche Bank is preparing to oust CEO John Cryan

  • Deutsche Bank COO Kim Hammonds told a conference that the bank is the "most dysfunctional" company she has ever worked for.
  • Hammonds made the comments at an internal managerial conference.
  • Her comments come as it is reported that chairman, Paul Achleitner is preparing to oust CEO John Cryan after a clash over strategy.

A top Deutsche Bank executive has described the bank as "most dysfunctional" company she has ever worked for, amid rumours that chairman Paul Achleitner is preparing to oust CEO John Cryan.

According to a German language report from the Frankfurter Allgemeine Zeitung, Deutsche's COO Kim Hammonds — who was previously global chief information officer at Boeing, and has held senior positions at both Ford and Dell — made the comments at a management conference in Germany.

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Deutsche Bank CEO John Cryan during a TV interview after the bank's annual news conference in Frankfurt, Germany, February 2, 2018. REUTERS/Ralph Orlowski
Deutsche Bank CEO John Cryan during a TV interview after the bank's annual news conference in Frankfurt, Germany, February 2, 2018. REUTERS/Ralph Orlowski
Deutsche Bank CEO John Cryan during the bank's annual news conference in Frankfurt, Germany, February 2, 2018. REUTERS/Ralph Orlowski
CEO of Deutsche Bank, John Cryan speaks during the 27th European Banking Congress at the Old Opera house in Frankfurt, Germany November 17, 2017. REUTERS/Ralph Orlowski
Deutsche Bank CEO John Cryan addresses the bank's annual news conference in Frankfurt, Germany, February 2, 2018. REUTERS/Ralph Orlowski
CEO of Deutsche Bank, John Cryan attends the 27th European Banking Congress at the Old Opera house in Frankfurt, Germany November 17, 2017. REUTERS/Ralph Orlowski
Deutsche Bank CEO John Cryan attends the German Banking Congress in Berlin, Germany, April 6, 2017. REUTERS/Fabrizio Bensch
Deutsche Bank CEO John Cryan attends the German Banking Congress in Berlin, Germany, April 6, 2017. REUTERS/Fabrizio Bensch
Deutsche Bank CEO John Cryan addresses the bank's annual general meeting in Frankfurt, Germany, May 19, 2016. REUTERS/Kai Pfaffenbach
Deutsche Bank new Chief Executive John Cryan addresses a news conference in Frankfurt, Germany October 29, 2015. Deutsche Bank said it was reducing its workforce by 15,000 as Cryan seeks to improve returns at Germany's biggest bank. The lender said it would axe 9,000 full-time jobs and 6,000 external contractor positions. REUTERS/Kai Pfaffenbach
FILE: John Cryan, chief executive officer of Deutsche Bank AG, poses for a photograph during the European Banking Congress on the final day of Frankfurt Finance Week in Frankfurt, Germany, on Friday, Nov. 17, 2017. Deutsche Bank AG is considering candidates to potentially replace John Cryan amid heightened tensions between him and Supervisory Board Chairman Paul Achleitner, the Times of London reported without saying where it got the information. The bank approached Richard Gnodde, the head of Goldman Sachs Group Inc.s international operations, but hes thought to have spurned the overture, the newspaper said. Deutsche Bank also considered UniCredit SpA CEO Jean Pierre Mustier and Standard Chartered Plc CEO Bill Winters, according to the report. Our editors select the best archive images for the Deutsche story. Photographer: Alex Kraus/Bloomberg via Getty Images
John Cryan, chief executive officer of Deutsche Bank AG, speaks during a Bloomberg Television interview as the bank announces fourth quarter results in Frankfurt, Germany, on Friday, Feb. 2, 2018. Germany's largest lender just closed out another year in the red, with revenue that declined to the lowest in seven years in the fourth quarter. Photographer: Andreas Arnold/Bloomberg via Getty Images
FRANKFURT AM MAIN, GERMANY - FEBRUARY 02: John Cryan, CEO of German bank Deutsche Bank, speaks to the media over the company's 2017 preliminary financial results on February 2, 2018 in Frankfurt, Germany. Germany's largest commercial bank, suffered losses of close to half a billion Euros in 2017 and higher than analysts expected. Cryan blames the negative result on the recent tax overhaul by U.S. President Donald Trump. Deutsche Bank, which is Germany's largest commercial bank, has been struggling with losses since 2014. (Photo by Thomas Lohnes/Getty Images)
John Cryan, chief executive officer of Deutsche Bank AG, pauses during a fourth quarter results news conference in Frankfurt, Germany, on Friday, Feb. 2, 2018. Germany's largest lender just closed out another year in the red, with revenue that declined to the lowest in seven years in the fourth quarter. Photographer: Andreas Arnold/Bloomberg via Getty Images
John Cryan, chief executive officer of Deutsche Bank AG, speaks during the European Banking Congress on the final day of Frankfurt Finance Week in Frankfurt, Germany, on Friday, Nov. 17, 2017. European Central Bank President Mario Draghi, who has for years struggled to combat low inflation in the region, reiterated on Friday that a key issue keeping prices down is that wages arent rising.�Photographer: Alex Kraus/Bloomberg via Getty Images
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Hammonds did not deny making the comments, according to the Handelsblatt newspaper, but said they were made at an "internal, confidential managerial conference." A spokesman for Deutsche Bank didn't immediately respond to a request for comment.

"The situation at Deutsche Bank is vastly more complex [than anywhere else], which isn’t really surprising. We’re a global bank in a difficult transformation," she added.

Deutsche Bank is in the midst of a major overhaul, spearheaded by John Cryan as it looks to end years of lacklustre performance.

The bank has sought to trim costs after reporting its third consecutive annual loss, losing almost half a billion euros in 2017. Germany's largest lender is also seeking to cut as many as 500 jobs from its investment bank, it was reported in February.

Separately, The Times reported that Deutsche Bank's chairman, Paul Achleitner, is preparing to oust CEO Cryan, and that the bank has started approaching possible candidates to replace Cryan after he and Achleitner clashed over strategy.

Cryan was brought in to Deutsche Bank in 2015 to spearhead a turnaround problem, but is believed to have faced resistance to the pace of change he wants to implement. "It is quite clear the relationship is broken between the chief executive and the chairman," an unnamed source told The Times.

The Times lists Goldman Sachs' London-based international CEO Richard Gnodde, Standard Chartered boss Bill Winters, and Jean Pierre Mustier, the head of Italy's biggest bank Unicredit, as possible replacements for Cryan.

Gnodde is said to have been approached by Deutsche Bank already, but is believed to have turned down the advances. 

Both Deutsche Bank and Goldman Sachs declined to comment on The Times' reports when approached by various news organisations.

Deutsche's current co-head of corporate and investment banking, Marcus Schenck, is also said to be seen as a possible internal replacement for Cryan. Last week Schenck told a conference in London that bank accounts as we know them now could disappear in as little as five years.

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