(Bloomberg) -- Deutsche Bank AG promoted fixed-income trading head Ram Nayak to co-lead the investment bank after his division helped keep the bank’s turnaround on track over the past years.

Nayak will share responsibility for the lender’s biggest profit and revenue engine with Mark Fedorcik, according to a memo seen by Bloomberg and confirmed by a spokesman for the German lender. Both executives will continue to report to executive board member Fabrizio Campelli, with Nayak keeping oversight of fixed-income trading.

Trading has been a key pillar in Chief Executive Officer Christian Sewing’s turnaround of the lender, more than offsetting weakness in other businesses. The unit has captured market share from rivals amid a broad-based market rally over the past two years, putting a central profitability target within reach as the lender enters the final year of Sewing’s plan.

Deutsche Bank on Thursday confirmed that target and raised its revenue outlook, as traders held onto market share gains in the final months of last year and dealmakers recorded their eighth straight quarter of revenue growth. Profit last year was the highest in a decade.

“The investment bank has executed the largest transformation in its history, stabilized its business model and strengthened its client franchise,” Campelli said in the memo, which highlighted the work of both Nayak and Fedorcik.

“This new structure will institutionalize even greater cooperation between the two sides of our business and give equal representation to our two largest hubs on both sides of the Atlantic with Mark in New York and Ram in London,” he wrote. 

The investment bank’s success is now forcing Deutsche Bank to pay up and raise bonuses. The lender is weighing an increase to its bonus pool of about 15%, Bloomberg reported this week. Sewing said on Thursday he’s concerned about surging wages in the industry, though the bank won’t shy away from competing for talent.

Nayak has been with Deutsche Bank for more than a decade, according to his LinkedIn profile, rising through the ranks until Sewing appointed him as head of the securities unit in 2019. That was shortly after the CEO decided to pull the bank out of equities trading and focus on the traditional strength in fixed income.

 

 

 

 

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