Asset Manager

Deutsche Bank ready to spin off DWS fund manager in IPO

Nicolas Moreau
Have I got a deal for you. Source: Bernd Roselieb for Handelsblatt

Deutsche Bank is poised to take the most tangible step so far in its reorganization with the stock market spinoff of its DWS fund management group as early as next month. The planned sale of the money manager could bring as much as €2 billion to Germany’s largest bank, as it tries to recover from years of scandal, fines and losses.

While other measures, such as merging its Postbank unit into its own retail operations or restructuring corporate and investment banking, will take time to bear fruit, the initial public offering for DWS will be something positive Chief Executive John Cryan can show impatient shareholders at the annual meeting in May.

But some Deutsche shareholders are concerned that the bank is giving up a stake in one of its most profitable sectors. The bank said DWS will pay out some two-thirds of its profit as dividends. Analysts, meanwhile, question whether the growth and earnings targets set for DWS as an independent entity aren’t too ambitious.

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