Deutsche Bank presses ahead with the listing of DWS, its most profitable unit

Deutsche Bank says it will press ahead with listing its prized asset management arm, DWS, on Monday, nearly a year after announcing plans to do so in an effort to regain investor support following many years of scandals and restructuring.

A deal would help Deutsche CEO John Cryan bolster the bank’s balance sheet and quell shareholder disquiet over the pace of its turnaround after a third consecutive annual loss, possibly opening the way to dividend payouts.

Deutsche, which said in March 2017 that it would list a stake in DWS as part of a broader overhaul following costly lawsuits and trading scandals, is expected to sell 25% of existing shares for €1.5bn to €2bn, sources said last week.

Germany’s biggest bank did not specify a date but it said it would be co-ordinating the initial public offering.

The offering was likely to take place in the week of March 19, the sources said, and had been brought forward in the hope of locking in market valuations ahead of any correction.

After numerous rights issues Deutsche hopes to put investor criticism over its balance sheet to rest by raising money through DWS, which at the upper end of the indicated range would probably qualify for inclusion in Germany’s mid-cap index.

DWS was Deutsche’s most profitable unit last year, with €725m in pretax profit on €2.5bn in revenues, compared with €877m profit on revenues of €4.2bn in corporate and investment banking.

Several companies revealed listing plans on Monday in a sign the European market is heating up.