Shares in Deutsche Bank edged higher this morning after it confirmed it will float a minority stake in DWS, its massive asset management arm, next month.
It is thought the lender will list a 25 per cent stake in DWS, which has €700bn (£614bn) under management, in two weeks’ time. Deutsche is expected to raise €2bn from the listing.
In an intention to float document published this morning, it added it will not issue new shares in DWS, which is Germany’s largest asset manager with €513bn in active assets, €71bn in alternatives and €115bn in passive assets.
It is also Europe’s second-largest provider of exchange traded funds, and had net inflows of €16bn in 2017.
“We are convinced that the planned IPO will act as a catalyst to support our strategy and deliver shareholder value,” said Nicolas Moreau, chief executive of DWS.
The IPO comes after several tough years for Deutsche Bank, which posted its third annual loss in a row earlier this month after it took a €1.4bn hit from Donald Trump‘s corporate tax reforms.
Last week it was revealed the lender expects to cut 500 jobs in its investment banking arm, after corporate and investment banking revenues fell 16 per cent year on year during the fourth quarter, while revenues from bonds and currencies dropped 29 per cent.
However, at the time of its results chief executive John Cryan, Deutsche’s chief executive, said performance was beginning to improve.
“We are firmly on the path to producing growth and higher returns with sustained discipline on costs and risks,” he said.