April 9, 2018 / 11:03 AM / 17 days ago

Factbox: Deutsche Bank's 30 years of twists and turns

FRANKFURT (Reuters) - Deutsche Bank has appointed German retail banking expert Christian Sewing as its new chief executive, a step change for the country’s largest lender which for almost 30 years followed a path of expanding investment banking.

Here’s a timeline:

1989 - Deutsche Bank expands into investment banking, buys a controlling stake in British merchant bank Morgan Grenfell. Sewing joined the bank the same year.

1995 - Deutsche Bank moves most of its investment banking activities to London from Frankfurt, and lures American Edson Mitchell from Merrill Lynch with a multimillion salary.

1998 - Deutsche Bank declares its large portfolio of shareholdings in German corporations to be non core. A portfolio of stakes worth 40 billion deutschmarks is put into a separate holding company: DB Investor.

- Deutsche Bank starts merger talks with rival Dresdner Bank.

- Deutsche Bank buys Bankers Trust Corp. for $10 billion, giving investment bankers critical mass to influence the German lender’s strategy.

2000 - Deutsche Bank agrees to a “merger of equals” with rival Dresdner Bank.

- Deutsche Bank’s investment banking chief tells the management board at a strategy meeting in Boca Raton, Florida, that Dresdner should shoulder the lion’s share of cost cuts after a merger.

- In April, the Dresdner-Deutsche Bank deal is called off after investment bankers at Dresdner Kleinwort Wasserstein reject planned cuts. Dresdner Bank CEO Bernhard Walter resigns and says a “historic opportunity” has been missed.

- The failure of the deal undermines Deutsche Bank CEO Rolf Breuer’s authority and bolsters the power of investment banking chief Josef Ackermann. Mitchell is nominated to the Deutsche Bank management board.

- Deutsche Bank tries to sell retail business Deutsche Bank 24 to concentrate on corporate and investment banking. The bank’s supervisory board rejects the move.

- Mitchell dies in a plane crash in December, giving Ackermann a dilemma over how to run the investment bank. Ackermann promotes Anshu Jain to be co-chief of the division.

2002 - Ackermann takes over from Breuer as chief executive of Deutsche Bank.

- Deutsche Bank unveils “phase one” of its strategy to expand investment banking, retail banking and asset management.

2003 – Deutsche Bank and Citigroup discuss a potential takeover. Citigroup CEO Sandy Weill and Ackermann have lunch in the Adlon Hotel in Berlin, where Weill proposes a deal: Deutsche would run the combined investment banking operations while Citigroup would take over retail and private banking.

2004 - Ackermann informs his supervisory board about a potential sale to Citigroup. Supervisory board representatives from German corporations including Siemens torpedo Ackermann’s plans.

- In May German Chancellor Gerhard Schroeder, who had been lobbied by captains of German industry to keep Deutsche Bank independent, called Ackermann and nudged Deutsche to buy retail lender Postbank.

- Deutsche Bank unveils “phase 2” of its strategy transformation and introduces a group-wide target to earn a pretax return on equity of 25 percent from German clients.

2006 – Deutsche Bank tries to mend fences by expanding its domestic retail operations. It buys Berliner Bank and 98 retail branches from Norisbank.

- Charges against Ackermann, for wasting corporate funds on bonus payments for Mannesmann executives, are dropped in exchange for a “non penal payment.”

- Deutsche Bank unveils its “phase 3” management agenda, aims to reach pretax profit of 8.4 billion euros ($10.3 billion) by 2008.

2007 - Deutsche Bank’s investment bank uses the lender’s balance sheet to make a $25 billion bet on mortgage-related securities.

2008 - Deutsche Bank completes takeover of Deutsche Postbank.

2009 - Jain and investment banking co-head Michael Cohrs are the only board members to get a “division related” compensation component.

- Deutsche Bank unveils “phase 4” of its strategy. CEO Ackermann says the bank will not boost investment banking profits by increasing leverage.

2011 - Deutsche Bank says Jain and Juergen Fitschen will take over from Ackermann as co-chief executives.

2013 - Deutsche Bank raises 3 billion euros in fresh capital. Jain says: “The hunger march is over.”

2015 - Deutsche Bank reviews a sale of Postbank as part of a strategic overhaul.

- Deutsche Bank shifts power to co-CEO Jain, retail banking chief Rainer Neske departs.

- Jain resigns. Deutsche Bank installs John Cryan as sole chief executive.

2018 - Deutsche Bank lists DWS, generating proceeds of around 1.4 billion euros.

- Deutsche Bank dismisses Cryan, appoints retail banking chief Sewing as chief executive. ($1 = 0.8150 euros)

Reporting by Edward Taylor; Editing by Douglas Busvine/Keith Weir

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