Deutsche Bank is likely to float its asset management arn following reports the German bank intends to sell parts of its business in a major overhaul.
The deliberations are still at an early stage and no decision has been made yet, sources told Reuters.
However, a source said before the IPO the bank would move the asset management arm’s main registration to Luxembourg for tax and regulatory advantages.
The bank is expected to present a strategy update to investors in spring.
Analysts estimates the asset management unit, including the DWS retail asset management business, to be valued €8bn in a potential IPO.
The news comes as the bank finalised its payment of $7.2bn (£5.9bn) to US authorities to settle an investigation into mortgage-backed securities.
As of September, Deutsche’s DWS brand has produced quarterly pre-tax profit of between €100m and € 265m over the last 18 months.
The asset management unit posted a 7 per cent growth in pre-tax profit to €549m in the first nine months of 2016, represented almost a third of the group’s profits of £1.6bn.
The unit had €715bn in assets under management as of September 2016.