Deutsche Bank rules out sale of its asset manager unit
Deutsche Bank has no plans to sell its asset management business, its chief executive said in a letter to employees in which he called for them to focus on solving the German lender's problems.
"Deutsche Asset Management is and will remain an essential part of our business model," John Cryan said in the letter, which was published on the bank's website yesterday.
Recent reports had said that Deutsche's management was considering a sale of the asset management business.
"Do not allow yourself to become distracted by speculation about alleged mergers or sales plans," Mr Cryan said. "We have enough on our plate to solve on our own, and we intend to concentrate on this for now."
Deutsche's shares were down 3pc at €13.24 at lunchtime in London yesterday, underperforming in a weaker market.
Speculation about Deutsche has been stoked by news that its top executives held talks with rival Commerzbank on a potential combination in August, but shelved the project as they first want to complete their restructurings, sources close to the matter have said.
While Mr Cryan said the bank was making progress with cleaning up the sins of the past and with cutting jobs, Deutsche Bank staff should also look ahead.
"Our work is not just about pursuing restructuring," he said, warning that a particularly cautious approach or a hierarchical mindset of some staff may prevent progress. The strategic overhaul and the uncertainty about jobs have dented the morale among Deutsche staff, Mr Cryan admitted earlier this year.
The bank is discussing deeper cuts to cope with negative interest rates, regulation and competition. (Reuters)