DWS Group (DWS) Q4 2024 earnings summary

Executive summary

• Assets under management (AUM) reached a record €1.012 trillion at year-end 2024, up 13% year-over-year, driven by strong net inflows and favorable market and FX movements.

• Long-term net inflows for FY 2024 totaled €32.9–33 billion, with Q4 contributing €14.4–14.5 billion; passive products delivered record net inflows of €41.8–42 billion.

• Adjusted profit before tax exceeded €1 billion, up 10% year-over-year, and net income attributable to shareholders rose 19% to €655 million.

• Adjusted cost-income ratio improved to 62.3%, at the lower end of guidance.

• Proposed ordinary dividend of €2.20 per share, a 5% increase year-over-year, subject to AGM approval.

Financial highlights

• Adjusted revenues for FY 2024 were €2.747 billion, up 6% year-over-year; reported revenues reached €2.765 billion, the highest since IPO.

• Adjusted profit before tax rose to €1.035 billion, a double-digit increase year-over-year; reported profit before tax up 23%.

• Adjusted cost base for FY 2024 was €1,713 million, up 3% year-over-year; reported costs decreased 2%.

• Management fee margin for FY 2024 was 26.1 bps, down 1 bps year-over-year, in line with guidance.

• Cost-income ratio improved to 60.6% in Q4 2024, down from 68.1% in Q4 2023.

Outlook and guidance

• 2025 targets reaffirmed: reported EPS of €4.50, adjusted cost-income ratio below 59%, and dividend payout ratio of ~65%.

• Revenues expected to rise in 2025, driven by higher AUM and improved alternatives outlook.

• Performance and transaction fees projected to contribute 4%-7% of total revenues.

• Reported costs forecasted to remain flat, with disciplined expense management.

• Midterm guidance: 10% annual EPS growth in 2026 and 2027, cumulative €150 billion long-term net flows for 2025-2027, and a 65% dividend payout ratio.