Deutsche Bank sees Postbank re-integration taking 3-5 years

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Deutsche Bank expects the re-integration of its Postbank unit to take three to five years, its chief executive said after Germany's top lender announced plans for an 8 billion euro ($8.5 billion) rights issue and a structural shake-up.

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The cost to re-integrate Postbank, which Deutsche had previously wanted to sell, is likely to be between 1.5 billion euros and 2 billion euros, the bank's retail head added in a call with journalists.

The bank also said the market environment in Germany is getting better, with prices improving for banking services.

"The overall mix of businesses becomes a little more stable ... A bit more predictable," Chief Executive John Cryan said on the rationale for keeping Postbank.

(Reporting by Arno Schuetze; Writing by Victoria Bryan and David Goodman)