Deutsche Bank has announced a significant restructuring of its global investment banking division, marking the first major leadership change under Alison Harding-Jones, who recently succeeded Mark Fedorcik as co-head of the division following his retirement. This move comes as the bank seeks to streamline operations and adapt to challenging market conditions.
Key appointments include Pierpaolo Di Stefano taking charge of origination and advisory for Europe, the Middle East, and Africa (excluding Germany, Austria, and Switzerland), while Jeff Cady and Bruce Evans will oversee operations in the Americas. Berthold Fuerst will lead the division in Germany, Austria, and Switzerland. These changes reflect a shift from a product-based to a regional structure, aiming to strengthen the bank’s dealmaking capabilities and reduce reliance on fixed income trading, which accounted for 87% of the bank’s investment bank earnings in the first quarter of 2025.
CEO Christian Sewing has labeled 2025 as a “year of reckoning,” emphasizing the urgent need to meet cost and profitability targets amid underperformance attributed to global trade tensions and economic uncertainty. The bank aims to achieve a cost-to-income ratio below 65% and a return on tangible equity exceeding 10%. However, analysts have expressed skepticism about the bank’s ability to meet these targets, with forecasts suggesting potential shortfalls.
The restructuring is part of a broader strategy to grow the investment banking division and reduce dependence on volatile revenue streams. Alison Harding-Jones, who joined Deutsche Bank in January 2024 as global head of mergers and acquisitions, brings over 30 years of experience from previous roles at Citigroup and UBS. Under her leadership, the bank’s M&A revenues have risen significantly, positioning her well to steer the division through this strategic shift.
Despite these efforts, Deutsche Bank’s deal-making business has underperformed expectations in the first half of 2025, with an 8% drop in origination and advisory revenue in the first quarter. CEO Sewing attributed this to delays in corporate decision-making, particularly due to U.S. tariff policies, but emphasized that deals are being postponed rather than canceled.
As the bank navigates these challenges, the clarity and execution of its leadership transition will be closely watched by stakeholders and the broader financial industry. The success of this strategic realignment will be pivotal in determining Deutsche Bank’s ability to meet its ambitious targets and maintain its market position.
