Deutsche Bank AG is considering a partial listing of its asset management unit to help boost its capital following a $7.2 billion settlement with the U.S over its sale of mortgage-backed securities, Reuters reported Jan. 24, citing "several people close to the matter."
Ahead of any listing, the bank would likely look to transfer the unit's main registration to Luxembourg, one source said, citing that country's tax and regulation advantages. Talks about the possible listing are still at an early stage and no decisions have been taken, the newswire's sources added.
Deutsche Bank has long said it would not look to divest the profitable asset management business to solve the issue of its relatively low capital buffers, but investors in the bank have said they would rather see Deutsche sell a chunk of the division than raise fresh equity, Reuters noted.
Deutsche Bank is set to present a strategy update in the spring, which will also determine whether the lender will pursue a full integration of Deutsche Postbank AG instead of selling it, the report added.