Deutsche Bank is planning to float its asset management arm “in the earliest available window,” it has announced.
The bank has formally announced its intention to sell shares in Deutsche Asset Management, having rebranded the unit to DWS ahead of the sale.
People familiar with the deal expect Deutsche to sell a 25 per cent stake for around 2 billion euros, Bloomberg reports.
The IPO was first touted by chief executive John Cryan last March. The bank originally tried to sell a significant stake in the unit 6 years ago but failed to raise enough funds.
While Deutsche’s stock has underperformed other banks and financial services companies so far this year, shares ticked up 0.6 per cent on the announcement.
In December, when Deutsche announced the rebranding of the unit, it offered 600 investment funds targeting fee margins in excess of 30 basis points.
While in the first three quarters of 2017 it achieved a 32 basis point margin, it had suffered 5 per cent outflows on global assets of around £600bn.
The new goal for DWS is net inflows of between 3 and 5 per cent. Investors can expect nearly three quarters of net income to be paid out in dividend while DWS looks to hit an adjusted cost-to-income ratio of less than 65 percent, this morning’s announcement reveals.