* Also examines asset management IPO
* Says may keep Postbank, integrate it with other retail ops
* Board meeting was planned for March 16/17 - source
* Decision on strategy expected end-March - source
(Recasts, adds background)
FRANKFURT, March 3 Deutsche Bank is
preparing for a potential capital increase of about 8 billion
euros ($8.5 billion) as it seeks to strengthen its balance sheet
and free up funds for strategic investments after years of
In a statement on Friday, the bank said it was also
examining several strategic measures including an initial public
offering of a minority stake in its asset management business as
well as retaining its Postbank unit and integrating it into its
other German retail business.
These steps depend on market conditions and the approval of
Deutsche Bank's management and supervisory boards, the German
flagship lender said, adding that no decision had been made on
the matter yet.
Earlier on Friday, a person close to the matter said that
Deutsche Bank would soon inform investors and
shareholders about adjustments to its future strategy.
A final decision about the strategy adjustments as well as a
possible share sale are expected at the end of March, following
a meeting of the bank's supervisory board on March 16 and 17,
the person said.
The move comes after Deutsche Bank posted a net loss of 1.9
billion euros in the final quarter of 2016 as legal costs for
past misdeeds weighed heavily on results and the bank fell
further behind its Wall Street rivals, lagging their strong
rebound in bond trading.
While Deutsche Bank has drawn a line under some major legal
headaches, earmarking 4.7 billion euros of its 2016 litigation
reserves for settlements of issues such as the sale of toxic
mortgages and sham Russian trades, it is not yet out of the
woods as some new civil lawsuits have emerged.
According to analysts, Deutsche Bank may see its asset
management arm, which includes its mainstay DWS retail asset
management brand, valued at 8 billion euros in a potential IPO.
The asset management unit has been touted as a potential
divestment target at various times in the past. However,
Deutsche Bank has always said that it would not shed the
Earlier this year, Deutsche Bank CEO John Cryan had said
that a capital plan is not the bank's base case plan.
"Our strong preference was not to raise fresh capital ...
but I know never to say never," he said in Davos.
($1 = 0.9426 euros)
(Reporting by Kathrin Jones and Anika Ross; Writing by
Christoph Steitz; Editing by Georgina Prodhan and Maria Sheahan)