Wells Fargo has set out plans to deepen cost cuts as the embattled US bank tries to improve returns in the wake of the sham accounts scandal.

In a presentation published ahead of its investor day on Thursday, the US bank said it planned to cut another $2bn in costs by the end of 2019* – on top of an existing $2bn overhead reduction plan.

Wells also cautioned that it expected to operate at the “low end” of targeted ranges for return on equity and return on assets this year. The bank had lowered the targets at the investor day last year.

Wells plans to close about 450 branches in 2017 and 2018 as part of the plan, “reducing redundant locations” and “consolidating less ideally located branches”.

Shares in the bank fell 2.6 per cent in early trade as the plan fell short of some expectations. Some analysts had anticipated additional cuts of $3bn.

*This post has been amended to correct the year.

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