Several analysts highlighted continued uncertainty at Deutsche Bank following its management change, despite shares of the German lender seeing an initial jump Monday morning.
Credit Suisse decided to cut its target price for the stock after the management change on Sunday. Morgan Stanley, meanwhile, said it ended the uncertainty on its leadership but added that there remained "ambivalence" on the shape and direction of its investment bank. It also said that the new CEO would likely be forced to announce new cost cuts.
"Given (new CEO Christian Sewing's) background in credit risk and commercial banking it could be seen as a signal of a move from investment banking," Colin McLean, managing director at SVM Asset Management, told CNBC in an email.
Sewing, a German national, was officially announced Sunday as Deutsche Bank's new chief executive officer with immediate effect. He was previously responsible for the private and commercial side of the German bank. Deutsche Bank posted a 497 million euro ( $610.15 million) loss for 2017, compared to a 290 million euro loss that Reuters analysts had estimated. This marked the third consecutive annual loss for the bank. Its investment unit has struggled over the last couple of years against increased market competition, in both trading and deal advising. The decision to appoint someone with a strong retail banking background is seen as a potential move towards a more domestic-market focused bank.