Mend and make do

26 February 2018 By Christopher Thompson Follow @CGAThompson

The German lender may raise 2 bln euros by listing a 25 pct stake in its fund management arm, boosting already strong capital ratios. In normal times Deutsche could return some excess to shareholders. But volatile investment banking revenue means it cannot be too generous.

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Deutsche Bank said on Feb. 26 that it plans to float its asset management business, DWS, on the Frankfurt Stock Exchange “in the earliest available window”.

Germany’s largest bank by assets is expected to sell 25 percent of existing DWS shares for 1.5 billion to 2 billion euros, Reuters reported, citing sources close to the matter.

Deutsche Bank announced in March 2017 that it would list a minority stake in its asset management arm, which has around 700 billion euros in assets under management, as part of a broader restructuring by Chief Executive John Cryan.

DWS will operate in the form of a KGaA (Kommanditgesellschaft auf Aktien) legal structure. This would allow Deutsche Bank to keep control even if its shareholding falls below the 75 percent usually needed to control German stock corporations.

Deutsche Bank shares were up 0.3 percent at 13.33 euros by 0950 GMT on Feb. 26.

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