New co-chief executives Anshu Jain and Jurgen Fitschen revealed the results of their review 100 days into the job, telling an investor conference that they will trim €4.5bn (£3.6bn) off the bank’s cost base over the next three years, at a pace of roughly €1.5bn per year.
The pair hope to raise the bank’s core tier one capital ratio to above 10 per cent by 2015, responding to investors fears that the last year’s ratio of less than six per cent was worryingly low.
They also announced plans to raise the return on equity to above 12 per cent, from eight per cent last year, and to cut the cost-income ratio from 78 per cent to below 65 per cent.
With high pay as one of the major costs in the bank, they plan to trim bonuses and lengthen the vesting period for share awards, as well as more job cuts.
That is in addition to the 1,900 job losses announced in July, most of which will fall outside Germany.
Markets approved of the new goals, pushing up shares 4.4 per cent in the day.