DWS Group (DWS) Q3 2024 earnings summary

Executive summary

• Achieved record assets under management (AUM) of EUR 963 billion, up EUR 30 billion quarter-on-quarter and EUR 67 billion year-to-date, driven by strong net inflows and market appreciation.

• Delivered record long-term net inflows of EUR 16.7 billion and total net flows of EUR 18.3 billion in Q3, marking the second-highest quarterly total since IPO.

• Adjusted profit before tax rose 5% quarter-on-quarter and 7% year-over-year to EUR 262 million, supported by positive operating leverage.

• Adjusted cost-income ratio improved to 61.7%, below full-year guidance, reflecting disciplined cost management.

• Management fees reached EUR 626 million, up 2% quarter-on-quarter, despite ongoing margin pressure.

Financial highlights

• Adjusted revenues increased 1% quarter-on-quarter and 3% year-over-year to EUR 685 million, driven by higher management fees.

• Adjusted costs decreased 1% quarter-on-quarter to EUR 423 million; reported costs fell 4% to EUR 440 million.

• Net income rose 14% year-over-year to EUR 168 million; earnings per share increased 13% year-over-year to EUR 0.83.

• Management fee margin annualized at 26.2 basis points in Q3, slightly down due to FX.

• Net inflows totaled EUR 18.3 billion in Q3, with long-term net flows of EUR 16.7 billion.

Outlook and guidance

• Adjusted cost-income ratio for 2024 expected at the lower end of 62%-64% guidance.

• 2025 targets reiterated: adjusted CIR below 59%, EPS of EUR 4.50, and profit before tax increase of EUR 450–500 million over 2023.

• Management fee growth on track to meet 2025 guidance, with a 5% increase in 9M 2024 vs 9M 2023.

• Alternatives expected to return to net inflows in H2 2024, driven by infrastructure products.

• Anticipate continued strong net inflows in Q4 and positive momentum into 2025.