DWS reports weaker 1Q25 results and reaffirms FY25 targets

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Investing.com -- DWS, the asset management company, reported weaker results for the first quarter of 2025 (1Q25). The underlying earnings, excluding volatile performance fees and other revenues, were significantly below consensus.

The net flows, or long-term assets, amounted to €11.7bn, which was slightly below the consensus of €12.6bn. The company also reported an unexpected return to outflows in alternatives.

Despite the weaker quarter, DWS reaffirmed its targets for the full year 2025 (FY25). These include an earnings per share (EPS) of €4.50, compared to the Value Analyst consensus of €4.18. The company also aims to maintain an adjusted cost-income ratio of less than 59%. This corresponds to a reported cost income ratio of less than 61.5%. In 1Q25, the reported cost income ratio was 62.2%.

The company also reported a pre-tax profit (PBT) of €284m, which was a 3% beat versus the consensus. However, the adjusted cost-income ratio of 61.9% was a miss, as the consensus was 60.7%.

The assets under management (AUM) of DWS remained flat sequentially at €1,010bn, which was 2% below the consensus.

RBC, the multinational financial services company, commented on the results, stating, "Overall, 1Q25 results were weak with underlying earnings (excluding volatile performance fees and other revenues) a material miss versus consensus, while net flows (long-term assets) of €11.7bn were slightly worse than cons of €12.6bn, but included an unexpected return to outflows in alternatives."

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