Deutsche Bank's new CEO Cryan plans major simplification of business model

New chief executive Deutsche Bank John Cryan has set out plans to simplify the business and hinted at major changes in coming years.

On his first day in the job as co-chief executive officer, Cryan sent a letter to staff that admitted the German bank's reputation had been "damaged by instances of serious misconduct".

Having spent two years on the company's supervisory board, Cryan said he was well aware that the several tough challenges lay ahead.

"We must simplify our business model, break down internal barriers and instil a culture of co-operation," he said, warning that "I am not going to tell you that all will be sweetness and light in the coming months."

Cryan, former CFO of UBS from 2008 to 2011, will work alongside fellow co-chief executive officer, Jürgen Fitschen until the German septs down and Cryan becomes sole CEO in May 2016.

Problems identified in his memo include having become too inefficient, with a cost base "swollen by poor and ineffective processes, antiquated and inadequate technology, too many tasks being completed using manual labour, and, too frequently, unsuccessful investments in our infrastructure".

Cryan also said DB was "too diversified and too complex for our own good".

"Where we encounter marginal business opportunities or businesses with poor prospects or business lines that are not controlled to the standards we demand, we will exit them, even if this means closing them down."

He said the board's Strategy 2020 would address this as one of its six broad pillars but that he believed it was right to take the summer and early autumn to decide how to best execute those decisions and so will therefore update the market with further details by the end of October.

Shares in Deutsche were 4.8% higher at €28.25 by the close on Wednesday.