DWS Group (DWS) Q3 2024 earnings summary

Executive summary

• Achieved record assets under management (AUM) of EUR 963 billion, up EUR 30 billion quarter-on-quarter and EUR 67 billion year-to-date, driven by strong net inflows and market appreciation.

• Long-term net inflows reached a record EUR 16.7 billion in Q3 2024, with total net flows of EUR 18.3 billion, marking the second-highest quarterly total since IPO.

• Adjusted profit before tax rose 5% quarter-on-quarter and 7% year-over-year to EUR 262 million.

• Adjusted cost-income ratio improved to 61.7%, below full-year guidance.

• Transformation journey deemed complete, with focus shifting to disciplined cost management and growth investments.

Financial highlights

• Adjusted revenues increased 1% quarter-on-quarter and 3% year-over-year to EUR 685 million, driven by higher management fees.

• Management fees rose to EUR 626 million, despite ongoing margin pressure; management fee margin annualized at 26.2 bps in Q3.

• Adjusted costs decreased 1% quarter-on-quarter to EUR 423 million; for 9M 2024, adjusted costs rose 3% year-over-year to EUR 1,274 million.

• Net income rose 14% year-over-year to EUR 168 million in Q3; EPS for Q3 was EUR 0.83, up 2% sequentially.

• Performance and transaction fees remained low at EUR 12 million, with expectations for a sizable Q4 contribution.

Outlook and guidance

• Confident in achieving 2025 targets: adjusted cost-income ratio below 59%, EPS of EUR 4.50, and profit before tax increase of EUR 450–500 million over 2023.

• For 2024, expect adjusted cost-income ratio at the lower end of 62%-64% guidance.

• Anticipate return to net inflows in alternatives for H2 2024, driven by infrastructure investments.

• Management fee growth on track to meet 2025 guidance, with a 5% increase in 9M 2024 vs 9M 2023.

• Strong pipeline for new fund launches, especially in ESG, thematic ETFs, and green transition products.