Deutsche Bank’s shares rose more than three per cent yesterday as investors welcomed chief executive John Cryan’s plan to restructure the German bank and cull managers in a move to cut costs and put past scandals behind it.

Cryan is under pressure to reform the bank, with costly litigation from a series of scandals and the fallout from the Asian market rout pushing its valuation well below rivals such Credit Suisse and UBS, which have already started their own restructuring.

Shares in Germany’s biggest bank were up 3.5 per cent by 0830 GMT, the top performer in a slightly firmer European bank sector.

“The fresh start as far as personnel is concerned has been done. Now the bank needs to deliver substance,” said Ingo Speich from Union Investment, one of Deutsche’s top 20 shareholders.

Deutsche Bank said on Sunday it would split its investment bank in two and part ways with three of its eight management board members.

JPMorgan analyst Kian Abouhossein said it showed Cryan would be “cutting bureaucracy and improving process efficiency and accountability”.

Thousands of job cuts, business closures and billions of euros of capital raisings are on the cards...

“It illustrates... Cryan is not afraid to make material changes and has the support of the supervisory board in doing so,” he said.

Cryan, who will give more details on his strategy on October 29, is among new bosses at European banks planning to restructure, including at Credit Suisse, Barclays and Standard Chartered.

Thousands of jobs cuts, business closures and billions of euros of capital raisings are on the cards as the CEOs of Europe’s biggest lenders respond to pressure to devise new strategies to revive them.

Credit Suisse’s new chief executive Tidjane Thiam will reveal his strategy tomorrow, which is expected to include plans to raise billions of euros and refocus on wealth and asset management, and reduce the investment bank.

As part of Deutsche Bank’s shake-up, the sales and trading activities will form a new division called global markets, while the corporate and transaction banking operations will be brought together in a corporate & investment banking unit.

Out goes Colin Fan, the co-head responsible for securities trading and an ally of Anshu Jain, the former co-chief executive of the bank.

Stephan Leithner, Stefan Krause and Henry Ritchotte are also resigning from the management board, together with the head of Deutsche’s wealth management business, Michele Faissola.