Germany’s biggest lender vows to become “the European champion” as CEO Christian Sewing shifts from survival to expansion
Deutsche Bank has entered a new phase of ambition. After years of restructuring and a fragile turnaround, Germany’s largest lender unveiled a sweeping set of profit, revenue, and efficiency targets that CEO Christian Sewing says will push the bank “from defense to offense” through 2028. The message to investors is clear: Deutsche Bank believes it is ready to compete head-to-head with Wall Street and Europe’s strongest financial institutions.
The plan marks Sewing’s third major strategy program since taking the helm in 2018, when the bank was buckling under years of losses, scandals, and a bloated investment bank. Since then, he has engineered a return to consistent profitability and steadier performance—though critics argue Deutsche remains too dependent on its investment banking franchise and continues to lag peers in consumer banking strength. With the bank now nearing the end of its 2022–2025 plan, most analysts expect it to meet its current goals, giving Sewing cover to aim higher.
Under the new roadmap, Deutsche Bank is targeting a return on tangible equity above 13% by 2028, up from its current goal of more than 10% and roughly in line with BNP Paribas—though still well shy of UBS’s 18% ambition. Revenue is expected to reach €37 billion ($42.9 billion) by 2028, compared with about €32 billion projected for 2025. The bank also wants to drive its cost-to-income ratio below 60%, an aggressive improvement from the existing sub-65% target. “Our long-term vision is to be the European champion,” Sewing declared.
The timing is bold. Global banks face rising geopolitical risks, a deepening trade war, credit deterioration, heavy regulation, and the disruptive force of artificial intelligence. Germany’s domestic economy remains weak, adding another layer of uncertainty. Even so, Deutsche executives argue the bank is more diversified than it has been in decades, with a healthier mix of corporate banking, asset management, and retail operations. Observers like Hohenheim University’s Hans-Peter Burghof credit the bank for softening the “mercenary-style” culture that once defined its investment bank, though he warns that German banking remains fiercely competitive and overregulated.
Despite progress, Deutsche’s recovery has been fragile. As recently as 2023, the bank’s stock plunged 15% in a single day amid global banking turmoil, prompting then-Chancellor Olaf Scholz to publicly reassure markets. And while Sewing’s last restructuring in 2019 included plans to slash 18,000 jobs, the bank ultimately backed off as business conditions improved—raising questions about whether the latest targets will hold.
Still, Deutsche Bank’s new strategy signals a shift in posture: no longer simply trying to survive, the lender is positioning itself as Europe’s next banking heavyweight.
The big question now: can Christian Sewing finally deliver a German bank that rivals its U.S. and Swiss competitors—or will global uncertainty derail Deutsche’s most ambitious plan yet?
