DWS Group (DWS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong momentum with record net inflows of EUR 19.9 billion, robust revenue and net income growth, and improved profitability, supported by a resilient, diversified business model.

• Net income rose to EUR 199 million, up 13% quarter-on-quarter and 37% year-on-year, driven by operating leverage.

• Cost-income ratio improved to 62.2%, down 2.3 percentage points quarter-on-quarter and 5.7 points year-on-year, reflecting disciplined cost management.

• Share price outperformed peers, leading to promotion to the MDAX in March 2025, increasing investor visibility.

• Strategic partnership with Deutsche Bank launched to accelerate private credit growth; ESG investigation in Germany concluded with no Q1 financial impact.

Financial highlights

• Revenues rose to EUR 753 million, up 3% quarter-on-quarter and 15% year-on-year.

• EPS grew to EUR 0.99, up 13% sequentially and 37% year-on-year.

• Costs decreased by 1% quarter-on-quarter to EUR 469 million, with compensation & benefits at EUR 243 million and G&A expenses at EUR 226 million.

• Management fees at EUR 639 million, down 1% sequentially but up 8% year-on-year; performance fees at EUR 37 million.

• Total assets under management (AUM) stable at EUR 1.01 trillion, with long-term AUM at EUR 891 billion, down 1% quarter-on-quarter due to forex and market depreciation.

Outlook and guidance

• EPS target of EUR 4.50 for 2025 reaffirmed, with 10% growth targeted for 2026 and 2027, assuming mid-single-digit equity market appreciation.

• Cost-income ratio guidance for 2025 is below 61.5% reported, with costs expected to remain flat versus 2024.

• Alternatives platform positioned for growth, especially in infrastructure and private credit, with new product launches expected by year-end.

• Anticipates positive net new asset contributions from liquid real assets, U.S. real estate, infrastructure, and private credit; European real estate may see slight outflows.

• Focus on diversification across asset classes and client segments, with disciplined cost management and no ongoing restructuring.