DWS publishes 2022 annual report
In its Annual Report published today, DWS Group reports final and audited figures as well as non-financial information for the business year 2022.
“Against the backdrop of these industry-wide – as well as DWS-specific – challenges, our company ended the year with solid results: Adjusted revenues amounted to EUR 2,683 million, essentially flat compared to the extremely successful previous year. Adjusted costs increased only slightly despite inflationary pressures and investments in growth initiatives thanks to continued strict cost management. The adjusted Cost-Income Ratio was 60.6 percent, in line with our guidance. Due to various one-off items, both adjusted pre-tax profit and profit after tax were significantly lower than in the previous year. Based on these results, we are pleased to be able to propose to the Annual General Meeting a further increase in the dividend to EUR 2.05 per share”, explains Stefan Hoops, Chairman of the Executive Board.
Hoops continues: “With our refined strategy, we have set ourselves the target of achieving earnings per share of EUR 4.50 in 2025. The adjusted Cost-Income Ratio should then be below 59 percent. We want to increase assets under management in Passive including Xtrackers by an average of more than 12 percent per year and in Alternatives by an average of more than 10 percent per year over the next three years. The payout ratio is expected to be 65 percent starting in 2025. In addition, and subject to capital commitment to organic and inorganic growth initiatives, we expect to propose an extraordinary dividend of up to EUR 1 billion in 2024.”
In addition, DWS published its Climate Report today, which is available under the following link: https://group.dws.com/responsibility. The Climate Report follows the recommendations of TCFD (the Taskforce on Climate-related Financial Disclosures) and provides an overview of how DWS incorporates climate-related factors in its investments and operational activities. As such, the company considers its Climate Report a key component to better understand its impact on climate change.
Outlook
Despite its cautious macroeconomic outlook, DWS expects Assets under Management to be higher at the end of 2023 as it expects net inflows into growth areas like Passive including Xtrackers and Alternatives. This should be further enhanced by strategic partnerships and product innovations, including further ESG offerings.
As a result of the spill-over effect from lower market levels at the end of 2022 as well as continued margin pressure, management fees are assumed to be slightly lower in 2023. Nevertheless, DWS expects total adjusted revenues to be essentially flat compared to 2022.
2023 will be a transitional year as expenses for DWS’ transformation program reach their peak and the company operates on a dual platform while it continues to establish its own capabilities. As a result, DWS assumes its adjusted cost base to be higher in 2023 compared to 2022. Consequently, the adjusted profit before tax is expected to be lower in 2023. The adjusted Cost-Income Ratio is expected to increase slightly, however, it is expected to stay below 65 percent.
The 2022 Annual Report can be found at https://group.dws.com/ir/reports-and-events/annual-report/.
Detailed information about the remuneration of the members of the Executive Board as well as Supervisory Board can be found in the Compensation Report (pages 155 to 187).
About DWS Group
DWS Group (DWS) with EUR 821bn of assets under management (as of 31 December 2022) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping navigate the transition to a more sustainable future. With approximately 3,800 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.
Important Note
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of DWS Group GmbH & Co. KGaA. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks.
Our ESG Product Classification Framework (“ESG Framework”) was introduced in 2021, taking into account relevant legislation (including SFDR), market standards and internal developments and was further described in our Annual Report 2021. Based on the further evolution of the regulatory environment, we incorporated some refinements into the ESG Framework in the fourth quarter of 2022. Besides liquid passively managed funds (ETFs) which apply a screen comparable to the “DWS ESG Investment Standard” filter or have a “sustainable investment objective”, as well as other liquid passively managed funds which have been labelled as ESG and/or seek to adhere to an ESG investment strategy now also liquid passively managed funds (ETFs) which track indices that comply with the EU Benchmark regulation on EU Climate Transition Benchmark and EU Paris-Aligned Benchmark are considered as ESG. Further details can be found in our Annual Report 2022.
We will continue to develop and refine our ESG Framework in accordance with evolving regulation and market practice. The aforementioned definitions apply to the entire release.
This release contains alternative performance measures (APMs). For a description of these APMs, please refer to the Annual Report, which is available at
https://group.dws.com/ir/reports-and-events/annual-report/.