In an effort to strengthen its fragile capital base Deutsche Bank announced plans to raise at least $8.5 billion in capital and sell off a stake in its asset management business.
Deutsche Bank will issue 687.5 million new shares later this month, the bank said, to take advantage of the recent run up in the stock price.
As part of the restructuring, Deutsche said it will take a part of its asset management business public. The bank will also abandon its plans to sell Postbank, and will integrate Postbank into the rest of its retail banking business.
Three Business Units
«Our decisions are a significant step forward on the path to creating a simpler, stronger and growing bank,» said John Cryan, Deutsche Bank Chief Executive.
To simplify its structure Deutsche will focus on three business divisions in the future.
A Private & Commercial Bank that will be the clear market leader in Germany as measured by number of clients. Postbank, Deutsche Bank’s international Private & Commercial Clients business and the global Wealth Management business will be part of this division.
Deutsche Asset Management, which should gain more operational independence through a partial IPO and be better positioned for growth.
An integrated Corporate & Investment Bank, which will comprise the bank’s Corporate Finance, Global Markets and Global Transaction Banking businesses, aiming primarily for a corporate-client led business.
Asian Wealth Issues
Last year the long time head of the German lender's Asian wealth business left the firm and joined rival UBS.
The defection of Ravi Raju, was a major blow and saw a restructuring in the private banking unit.
