Deutsche Bank announced this morning that it will review its global asset management division after recent regulatory changes and costs have increased pressures on the unit.
In its statement, Deutsche Bank said all options were being considered, leaving the potential for a sale on the table.
“The outcome of this review will be driven first and foremost by our fiduciary duty to, and the interests of, our clients,” said Kevin Parker, Global Head of Asset Management. “Our aim is to find the best strategic option to maximise the performance and potential of the Asset Management division.”
Revenue in the company’s asset and wealth management corporate division declined 7% year-on-year to €876 million during the third quarter. The company attributed the drop to lower asset and performance based fees as market values depreciated.
Invested assets fell €17 billion to €780 billion in the quarter, as market performance hurt investments.
Deutsche Bank said it will maintain its DWS franchises in Germany, Europe and Asia, regions where it believes asset management is a significant part of its operations.
The asset and wealth management industries have evolved incredibly since the throes of the financial crisis in 2008. During the period, Morgan Stanley purchased a majority of Citigroup’s wealth management unit, Smith Barney, for $2.75 billion. Bank of America also took control of Merrill Lynch’s division after its purchase of the investment house.
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