DWS Group (DWS) investor relations material

Executive summary

• Achieved record assets under management (AUM) of EUR 1,190 billion in Q2 2026, up 18% year-on-year and 9% quarter-on-quarter, driven by strong client momentum, positive net flows, and favorable market developments.

• Delivered strongest first-half financial results to date, with revenues and EPS up year-on-year, profit before tax up 16% to EUR 682 million, and net income up 21% to EUR 502 million.

• Major front office and organizational transformation completed, enhancing client focus, accountability, and investment agility.

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

• Strong performance in active equity, SQI, and Xtrackers, with flagship funds leading inflows and improved investment performance.

Financial highlights

• Q2 2026 revenues at 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.

• Net income for Q2 2026 was EUR 237 million, up 11% year-on-year, down 10% quarter-on-quarter; H1 net income up 21% year-on-year to EUR 501 million.

• Management fees rose 13% year-on-year to EUR 709 million, with fee margin stable at 24.7–24.8 bps; long-term management fee margin at 27.2–27.4 bps.

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

• Cost-income ratio at 60.5% in Q2 2026, up sequentially; H1 CIR improved to 57.2% from 60.7% year-on-year.

Outlook and guidance

• Confident in achieving flat costs and a cost-income ratio between 55% and 57% in 2026, targeting below 55% medium-term.

• EPS growth target of 10%-15% annually through 2028, with pension reform and AUM growth as key drivers.

• Performance and transaction fees expected at upper end of 4%-8% of revenues in 2026, lower half in 2027.

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

• Net flows anticipated to be significantly higher than 2025, especially in Passive and Cash products.