DWS Group (DWS) investor relations material

Executive summary

• Achieved record assets under management (AUM) of EUR 1.19 trillion in Q2 2026, up 18% year-on-year and 9% quarter-on-quarter, driven by strong net flows, client momentum, and favorable markets.

• Delivered strongest first-half financial results to date, with profit before tax up 16% year-on-year to EUR 682 million and net income up 21% to EUR 502 million, supported by increased management fees, stable costs, and improved profitability.

• Major front office and executive board reorganization completed, enhancing client focus, accountability, and investment agility.

• Strategic positioning for German pension reform, expected to drive significant long-term growth opportunities and new mandates.

• EPS for H1 2026 rose 21% year-on-year to EUR 2.51, in line with medium-term targets.

Financial highlights

• Q2 2026 revenues were EUR 773 million, up 4% year-on-year but down 6% quarter-on-quarter; H1 revenues up 6% year-on-year to EUR 1,594 million.

• Q2 net income was EUR 237 million, up 11% year-on-year but down 10% quarter-on-quarter; H1 net income up 21% year-on-year to EUR 501 million.

• Total costs were EUR 468 million in Q2, up 6% year-on-year and 5% quarter-on-quarter, mainly due to volume-driven and share price-linked compensation; H1 costs stable at EUR 912 million.

• Cost-income ratio stood at 60.5% in Q2, up sequentially, but improved to 57.2% for H1, down 3.5 percentage points year-on-year.

• Management fees grew 13% year-on-year, with margin stable at 24.7–24.8 bps; performance and transaction fees were lower in Q2 due to timing.

Outlook and guidance

• Reaffirmed medium-term cost-income ratio target below 55% by next year, with flat controllable costs expected.

• EPS growth target of 10%-15% annually through 2028, with management fees as the main driver.

• Anticipates significant inflows from German pension reform, especially as new products launch in 2027 and new mandates are secured.

• Dividend payout ratio targeted at around 65% since 2025.

• Industry outlook remains challenging due to macroeconomic and geopolitical risks, but opportunities exist for scalable, tech-enabled platforms.