Deutsche Bank mulls IPO of asset management unit

Helen Cahill
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Deutsche Bank Announces 2012 Financial Results
The German bank has been having a tough time recently (Source: Getty)

Deutsche Bank is looking to float its asset management unit to replenish its cash buffers following a predicted multi-billion-dollar settlement with the US government over alleged miss-selling of mortgage-backed securities.

According to the Financial Times, the German bank is yet to make a final decision on the IPO. It would be a minority stake in the bank's asset management unit, and is likely to happen in the second half of next year.

Read more: Deutsche Bank confirms 1,000 German jobs to get the chop

Deutsche Bank has been embroiled in controversy as it moves to a settlement with the US Department of Justice (DoJ) for selling toxic mortgage-backed securities that kicked off the financial crisis of 2008.

The bank's chief executive is reportedly meeting the DoJ in Washington as the IMF and World Bank annual meetings take place, but a deal is unlikely to be finalised with this meeting, according to reports.

The division Deutsche is looking to float has €719bn (£642.8bn) in assets under management, and analysts have pegged its worth at €8bn.

Read more: Deutsche Bank share price lifted by IMF support

Germany's biggest bank is going through a rough patch. Its share price has been falling as investors hunt for clues on its financial outlook after the news that is faces a $14bn (£11.3bn) fine from the DoJ. It then emerged German Chancellor Angela Merkel would not make moves to save the bank, despite much speculation that she would step in.

Yesterday, Deutsche Bank confirmed it would be cutting 1,000 German jobs.

Deutsche Bank: What you need to know

  1. Timeline: Deutsche's annus horribilis
  2. Why is it in such a state? All the reasons Deutsche is in crisis
  3. There's a new "sick man of Europe": This time the patient is Europe's banking sector

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