DWS Group (DWS) Q2 2025 earnings summary

Executive summary

• Q2 2025 EPS rose to €1.07, with net income up 32% year-over-year, driven by resilient revenues, disciplined cost management, and strategic investments in digital and alternatives.

• Assets under management (AuM) stable at €1,010bn–€1.10tn, with robust net flows and continued expansion in Xtrackers and alternatives.

• Cost-income ratio improved to 59.2%, reflecting effective cost discipline and supporting strong capital position with €0.8bn in excess capital.

• On track for €4.50 EPS in 2025, serving as a base for 10% annual EPS growth in 2026 and 2027.

• Dividend payout ratio set at ~65% from 2025, with €3.44bn returned to shareholders since IPO.

Financial highlights

• Q2 revenues stable at €746mn, up 7% year-on-year, with management fees at €630mn and performance fees at €58mn.

• Net income rose to €240mn in Q2, up 8% quarter-on-quarter and 32% year-on-year; H1 net income at €413mn.

• Cost-income ratio improved to 59.2% (reported) and 58.9% (adjusted) in Q2 2025.

• Long-term net flows of €3.7bn in Q2; total net flows €8.5bn; H1 net inflows €28bn, mainly from Passive and Cash.

• AuM stable at €1,010bn–€1.10tn, up 8% year-on-year.

Outlook and guidance

• Confident in achieving €4.50 EPS for 2025, with additional upside from Q4 performance fees and PEIF IV fundraising.

• Targeting 10% annual EPS growth in 2026 and 2027, assuming 5.5% revenue growth and 2% cost growth per year.

• Expecting cumulative €150bn in net new assets over 2025–2027, with momentum returning in Q3.

• Passive AuM expected to be considerably higher and Alternatives slightly higher by year-end.

• Reported revenues anticipated to rise considerably versus 2024, with costs remaining flat.