Deutsche Bank investment bank head Ritchie leaves in revamp

[FRANKFURT] Deutsche Bank AG investment bank head Garth Ritchie is leaving, marking the first official casualty of an overhaul that's shaping up to be the largest in the lender's recent history.

Ritchie will depart at the end of the month "by mutual agreement," the bank said in a statement on Friday. Chief Executive Officer Christian Sewing will take over responsibility for the division and further changes to the investment bank's leadership will "follow in due course," the bank said in the release.

Mr Sewing is poised to present a sweeping overhaul, probably after a supervisory board meeting scheduled for Sunday. The restructuring plan will be focused on deep cuts to the investment bank, which has long underperformed rivals, and changes to the lender's leadership, people familiar with the matter have said.

Mr Ritchie has been the target of criticism for some time. He and Sylvie Matherat, a fellow board member and chief regulatory officer - who has likewise been rumored to leave - received the lowest approval vote at Deutsche Bank's annual general meeting. Mr Ritchie was also names as one of many suspects in an investigation by German prosecutors into alleged tax fraud.

"We thank Garth Ritchie for his dedication and the remarkable contribution he has made to the bank over his long career," Chairman Paul Achleitner said in a statement on Friday. "He helped Deutsche Bank to weather an extremely challenging period and we wish him all the best for the future."

Mr Ritchie joined Deutsche Bank in 1996 in Johannesburg and subsequently rose up the ranks. He was promoted last year to deputy co-CEO and sole head of the investment banking division, which contributes roughly half to the bank's overall top line despite criticism of the division's performance during his tenure.

BLOOMBERG