Deutsche Bank chief rules out asset management sale

Regulatory fines and a thin capital base have increased pressures on key business areas.

Deutsche Bank’s chief executive John Cryan has ruled out a possible sale of its asset management business, despite facing increasing pressures to raise capital.

In a letter to employees, Cryan explained: “There is one rumour in particular that I would like to dispel by making it unambiguously clear that Deutsche Asset Management is and will remain an essential part of our business model.”

Deutsche Bank shares have plummeted this year, as regulatory fines and a thin capital cushion have increased pressures on key business areas.

Recent reports suggested a possible sale of Deutsche Asset Management as part of a larger strategic review.

Deutsche Bank split its asset and wealth management unit in October last year, three years after creating the division. Its asset management unit focuses on the bank’s fund management business and on institutional clients.

In 2015, revenues from asset management increased 16% to 3.3 billion euros ($3.8 billion).