FRANKFURT--Deutsche Bank AG's incoming co-Chief Executive John Cryan on Wednesday said he is committed to simplifying the bank and narrowing the scope of it's operations, as he postponed a detailed presentation of the giant German lender's new strategy until the end of October.
"I am not going to tell you that all will be sweetness and light in the coming months," he
said in a letter posted on the bank's website, setting the stage for potentially deep staff cuts and an increased focus on changing the business's corporate culture.
on Wednesday stressed his
commitment to the cornerstones of a new strategy announced by the bank in April, which included plans to shed its Postbank AG
retail banking business, but said he
would take the summer and fall to examine how to cut costs and other details of the plan.
The presentation was previously slated for this month.
The strategy aims to streamline the German lender and boost profitability, but stops short of a radical plan to split investment banking and retail operations into separate companies.
Investors were keenly awaiting Mr. Cryan's
take on the strategy, which some complained lacked detail when first announced.
staff on his
first day on the job, Mr. Cryan
conceded that the reputation of Germany's largest lender has been "damaged by instances of serious misconduct.
Heavy fines for settling lawsuits "have strained our capital...and will likely continue to do so for some time," he
"No one can promise that we will never again make a mistake, but I can tell you that we will decisively identify problems, apply fixes and hold accountable those who misbehave," Mr. Cryan
One of Mr. Cryan's
tasks will be to mitigate the bank's contentious relationship with regulators.
said Deutsche Bank
has to improve internal processes and culture, and wished Mr. Cryan
now hopes to open a new chapter for Deutsche Bank
A top priority is making deep cost cuts to close the profitability gap with rivals.
, 54, is expected to accelerate EUR3.5 billion in announced cost cuts that the bank wanted to achieve by 2020.
The Brit has a reputation for trimming costs.
, the overhaul he
orchestrated cut operating costs 22% between 2008 and 2011, mainly by cutting back on fixed-income trading that lacked the scale of its larger rivals.
At the same time, head count fell roughly 17%.
On Wednesday, Mr. Cryan
would scale back Deutsche Bank's
securities and derivatives trading business, which are "heavily reliant on long-term balance sheet usage."
also suggested he
will strengthen the bank's more stable sources of income, including investment banking advisory services, transaction banking, and retail and asset and wealth management operations.