The bank plans to reduce its investment bank assets by €200bn, and to focus on key markets and cities as part of its restructuring programme, it said.
Deutsche Bank's Postbank retail arm will also be sold, and $1bn invested in "new digital technologies" across the bank, it said.
The bank also will aim to raise its leverage ratio, measuring capital against assets, to at least 5%.
Deutsche Bank is committed to being "a leading global bank based in Germany", it said in its statement.
"To achieve this, we must remain client-centric, but focus more sharply on mutually attractive client relationships; remain global, but become more geographically focused; and remain universal, but avoid trying to be all things to all people."
"We are convinced that pursuing a focused client-centric business model is the right choice for us. This business model, which is unique to Deutsche Bank, will get us closer to our roots, the statement said.
Overall, the planned changes should cost €3.7bn, Deutsche Bank said.
Last week, Deutsche Bank paid a record US$2.5bn in fines to US and UK authorities over allegations that it manipulated the interbank offered rates (IBOR).
Deutsche Bank said that it would pay £227mn ($340mn) to the UK’s Financial Conduct Authority (FCA) and a combined $2.175bn to the US Department of Justice, Commodity Futures Trading Commission and the New York Department of Financial Services.
The bank was also the target of the United Arab Emirates largest ever fine of AED 30.8mn (US$8.4bn), for "serious contraventions" including misleading the Dubai Financial Services Authority, failures in its internal governance, systems and controls, and failures in its client take-on and money-laundering procedures.
Anshu Jain, co-chief executive, told the Financial Times that “regulation has been tough for the last number of years. We are under no illusions, we think that will remain a key challenge."
However, he said, “2014 is the year [we proved that] . . . we did shrink our balance share significantly and grow market share at the same time”, the Financial Times reported.