Deutsche Bank has launched a new legal entity called DB Privat- und Firmenkundenbank, created through the merger of its private and commercial clients business and its consumer banking arm Postbank.

The merged entity will operate as a wholly-owned subsidiary of Deutsche Bank. It will serve more than 20 million private clients and one million commercial and corporate clients through 10,000 access points.

The combined group will manage over €331bn in assets including sight deposits and will have a workforce of 28,000.

Moreover, the new entity will continue to operate both Deutsche Bank and Postbank brands, enabling existing clients to retain their established contacts.

Deutsche Bank CEO Christian Sewing said: “I’m delighted that we have managed to merge the two banks as planned. This means we have reached a key milestone. As we continue with our reorganisation plan we will cut costs and boost revenues. We will then grow synergies gradually to at least 900m per year by 2022 at the latest.”

The German bank also unveiled plans to invest €1.9bn for restructuring, IT and other associated works.

Deutsche Bank management board member and private and commercial bank head Frank Strauß said: “Starting from this position of strength as the undisputed leader in Germany’s banking market we intend to drive the digital transformation of our business, continue to grow and consistently make a significant contribution to group earnings.”