Earnings Alerts

DWS Group GmbH & Co (DWS) Earnings: Optimistic 2025 Outlook with Cost-Income Ratio Targets Below 59%

By January 30, 2025 No Comments
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  • DWS targets an adjusted cost to income ratio below 59% in 2025, with a current estimate of 59.1%.
  • For the fourth quarter, DWS recorded net inflows of €18.4 billion, a 0.5% increase quarter-over-quarter, surpassing the estimated €10.95 billion.
  • The company achieved an adjusted pretax profit of €293 million, marking a 12% increase quarter-over-quarter, but falling short of the €303 million estimate.
  • Earnings per share (EPS) were €0.91, slightly below the estimated €0.98.
  • Assets under management rose to €1.01 trillion, a 5.1% increase from the previous quarter, exceeding the estimate of €979.68 billion.
  • Revenue reached €731 million, a 6.7% rise quarter-over-quarter, although slightly below the expected €748 million.
  • The adjusted cost to income ratio for the fourth quarter improved to 60% from 61.7% the previous quarter, against an estimate of 59.4%.
  • For the year 2024, DWS declared a dividend per share of €2.20, slightly below the estimate of €2.27.
  • Looking ahead to 2025, DWS aims for an EPS of €4.5 and a dividend pay-out ratio of approximately 65%.
  • Revenues in 2025 are projected to be higher compared to 2024, while costs are expected to remain steady.
  • The company plans for a reported EPS growth of 10% per year in 2026 and 2027, maintaining a 65% dividend pay-out ratio.
  • DWS anticipates further improvement in the reported cost-income ratio through 2027.

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A look at DWS Group GmbH & Co Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth3
Resilience5
Momentum5
OVERALL SMART SCORE4.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Looking at the Smartkarma Smart Scores for DWS Group GmbH & Co, the company seems to have a bright long-term outlook. With a high score in Dividend and Resilience, it indicates that the company is strong in providing returns to its shareholders and is well-equipped to handle market challenges. Additionally, scoring high in Momentum suggests that DWS Group is maintaining a positive growth trajectory, backed by its Value score which signifies that the company is trading at an attractive valuation compared to its peers.

DWS Group GmbH & Co. KGaA, an asset management firm offering a variety of investment products and digital solutions, seems positioned for continued success based on its impressive Smartkarma Smart Scores. Amidst serving a global customer base, the company’s strong Dividend, Resilience, and Momentum scores speak to its ability to deliver value, withstand volatility, and sustain growth in the long term. Overall, DWS Group appears well-equipped to provide institutional and private investors with promising investment opportunities across different asset classes.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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