CRZBF - Deutsche Bank: Highlighting The DWS Stake And How It Could Help Restore Market Confidence
2023-04-02 07:50:49 ET
Summary
- Deutsche Bank owns a 79.49% stake in asset manager DWS, which went public in 2018.
- Asset management is DB's most profitable segment, bringing in 10.7% of 2022 pre-tax profits for just 3.6% of total risk-weighted assets.
- I estimate a potential sale could boost CET1 capital to 14.7% from 13.4% at the end of 2022.
- Negatives of a potential sale include lower risk-adjusted returns, more reliance on higher return correlation among the private and corporate bank.
- I think an imminent sale of DWS is unlikely. However, the asset is underappreciated by the market and a sale is prudent, especially if DWS starts losing AuM due to DB ownership.
For further details see:
Deutsche Bank: Highlighting The DWS Stake And How It Could Help Restore Market Confidence