Sachs appeal

14 Jan 2015 By Dominic Elliott

Listing its retail arm, as the German lender is reportedly considering, would leave a Goldman-style investment bank with a transactions business tacked on. It could cut Deutsche’s leverage. But the group would be upping its bet that the fixed income slowdown is cyclical.

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Deutsche Bank is considering listing its retail division if European banks are forced to ring-fence trading activities, Reuters reported on Jan. 14 citing a source with knowledge of the German lender’s strategic deliberations.

Any flotation of the bank’s retail operations could be done in stages to attract the interest of a foreign partner like BNP Paribas or Santander, the source told Reuters.

In an emailed statement to Breakingviews, Deutsche Bank said: “We have been transparent that the bank will review and update its strategy over the course of the coming year. It is irresponsible to speculate on the sale of any business.”

Deutsche shares were down 1.6 percent to 24.28 euros by 1600 GMT.

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