DWS Group (DWS) Q4 2024 earnings summary

Executive summary

• Assets under management (AUM) reached a record €1.012 trillion at year-end 2024, up 13% year-over-year, driven by strong net inflows and favorable market and FX movements.

• Delivered €32.9 billion in long-term net inflows for 2024, with passive products contributing €41.8 billion and Q4 passive net flows of €14.5 billion.

• Adjusted revenues reached €2.747 billion, up 6% year-over-year, with net income attributable to shareholders up 19% to €655 million.

• Adjusted profit before tax exceeded €1 billion, a double-digit increase year-over-year, supported by revenue growth and cost discipline.

• Proposed ordinary dividend of €2.20 per share, a 5% increase versus last year, subject to AGM approval.

Financial highlights

• Adjusted profit before tax rose to €1.035 billion, a double-digit percentage increase year-over-year.

• Q4 2024 adjusted revenues were €731 million (+7% QoQ), with adjusted costs at €439 million (+4% QoQ).

• Management fee margin for FY 2024 was 26.1 bps, about 1 bp lower than 2023, in line with guidance.

• Adjusted cost-income ratio improved to 62.3% for 2024, at the lower end of guidance.

• FY 2024 net income attributable to shareholders was €655 million, up 19% year-over-year.

Outlook and guidance

• 2025 targets reiterated: reported EPS of €4.50, adjusted cost-income ratio below 59%, and dividend payout ratio of ~65%.

• Revenues expected to rise in 2025, driven by higher AUM and stronger alternatives.

• Performance and transaction fees projected to contribute 4%-7% of total revenues.

• Reported costs expected to remain flat in 2025, with lower cost adjustments.

• Medium-term targets: 10% annual EPS growth in 2026 and 2027, cumulative €150 billion net flows over 2025-2027.