Deutsche Bank mulls spin-off of asset management: FT

[FRANKFURT] Deutsche Bank is working on a spin-off of its asset management business as one of several options to bolster its capital, the Financial Times reported on Friday, citing people familiar with the matter.

Germany's biggest lender has not made a final decision about whether to float a minority stake in the unit, and any such move is unlikely before the first half of 2017, the paper said.

Deutsche Bank declined to comment on the report.

An initial public offering (IPO) would represent a partial or complete sale of the business that Deutsche Bank has long been reluctant to sell.

Deutsche has been engulfed in crisis since news emerged last month of a U.S. demand for a US$14 billion settlement over the sale of toxic mortgage bonds.

Deutsche Bank chief executive John Cryan told staff last month that he had no plans to sell the asset management business, saying it is and will remain an essential part of the lender's business model.

REUTERS