Supervisory Board Chairman Paul Achleitner wanted to get rid of Bank CEO John Cryan, so the press reported at the end of March 2018. Less than two weeks later, Achleitner had already ousted the Briton. After several external candidates were reviewed, the choice for the top job at Deutsche Bank fell on the head of retail banking, Christian Sewing. His mission: to stabilise the bank on the cost side, while increasing revenues and refocusing the institution more strongly on the roots of its corporate banking business. His aspiration: Deutsche Bank should regain its „hunter mentality“.

Seven years later, it can be said that this mission has only partially succeeded. The bank mostly exudes the modest charm of a mid-sized bank rather than that of a major bank with ambitions for above-average growth. That is likely a result of the influence of its CEO, whose contract was recently extended until spring 2029. He has earned this extension. Even if there are some points deducted in this grades, the bank today is at least dividend-capable and free of scandals. Still, shareholders have the right to expect more.

Anyone who wants to outline the future must first understand Christian Sewing’s mission and its context. This includes the work of John Cryan, who was the first to take on cost cutting after the Josef Ackermann disaster („This bank has never saved before“ was said at the time in a background talk) as well as structural cleanup. Sewing simply continued that mission and, due to regulatory requirements, curtailed investment banking. However, this ran counter to the bank’s identity, which at its core is a securities house.

„What we admire and do not possess is the Anglo-Saxon culture in the finance money business.“ That was said by then-Deutsche Bank CEO Alfred Herrhausen at the end of 1989. What followed was the entry into global investment banking – which was then reversed in 2018. The then-head of investment banking, Marcus Schenck, had informed Achleitner that, in his view, Deutsche Bank was the only European bank that could remain one of the world’s leading investment banks in the future.

It no longer is that bank today, but sum-of-the-parts analysis shows that only the securities business offers the institution a chance at excellence. There is no glory to be won with the German retail business. The corporate banking business is an important pillar, but unfortunately with limited growth opportunities – and thus not suitable as an anchor for a bold equity story.

And instead of getting lost further in micromanagement, Deutsche Bank should take the advice of Oliver Behrens, president of Frankfurt Main Finance. To catch up with foreign banks, German institutions must expand their securities business, he notes. Only that can be the lever for Deutsche Bank – and strategically, it would strengthen areas where it is already strong. Today, investment banking accounts for only about one-third of revenues but contributes nearly two-thirds of pre-tax profit.

What that means is obvious: instead of constantly trying to balance things that hardly boost market value, Deutsche Bank should look for ways to grow its securities business. Mergers and acquisitions can also be used to create a transformative effect on how the capital market perceives the company. The subsidiary DWS, which accounts for 8 billion euros of Deutsche Bank’s market capitalization of 49 billion euros, has long wanted to make acquisitions. DWS CEO Stefan Hoops recently said that purchase opportunities could now arise. This would at least be a first M&A building block – and it would live up to the claim of the „hunter mentality“. It may be that the demand for more securities business has so far hardly featured in public debate. But contrarians often turn out to be right in the long run. And Deutsche Bank would certainly benefit from such a debate.