DWS Group (DWS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong momentum with EUR 11.7–12 billion in long-term net inflows and EUR 19.9–20 billion total net flows, driven by robust demand for Xtrackers, fixed income, and supported by Active SQI.

• Net income rose 13% quarter-on-quarter and 37% year-on-year to EUR 199 million, supported by rising revenues and cost control.

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

• Total assets under management reached EUR 1,010 billion, stable quarter-on-quarter and up 7% year-on-year.

• Strategic milestones included promotion to MDAX, a new private credit partnership with Deutsche Bank, and settlement of the ESG investigation with no Q1 financial impact.

Financial highlights

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

• Costs decreased 1% quarter-on-quarter to EUR 469 million, with lower G&A expenses offsetting higher compensation.

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

• Earnings per share rose to EUR 0.99, up 13% sequentially and 37% year-on-year.

• Profit before tax increased 10% quarter-on-quarter and 36% year-on-year to EUR 284 million.

Outlook and guidance

• EPS target of EUR 4.50 for 2025 reaffirmed, with 10% growth expected 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.

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

• Alternatives platform positioned for growth, especially in private credit, infrastructure, and liquid real assets.

• Strong positioning in Europe and financial flexibility, with substantial excess capital buffer.