DWS shares jump over 5% as Q2 earnings beat on fee-driven revenue growth

Published 24/07/2025, 11:34
© Reuters.

Investing.com -- DWS (ETR:DWSG) shares rose more than 5% on Thursday after the Frankfurt based company reported second-quarter 2025 net income of €214 million, exceeding the company-compiled consensus of €191 million by 12%.

Pre-tax profit reached €304 million, also 12% ahead of consensus. Adjusted revenues totaled €746 million, coming in 4% above expectations. 

BofA attributed the beat to stronger performance and other revenues, each reported at €58 million. 

Performance fees were supported by alternatives and improved transaction fees, while management fees of €630 million were broadly in line. The management fee margin stood at 25.1 basis points.

Assets under management at the end of June were €1.01 trillion, 1% below consensus. 

Net inflows for the quarter totaled €8.5 billion, just under the €9.1 billion forecast and down from €19.9 billion in the previous quarter. 

Excluding cash and advisory mandates, net inflows stood at €3.7 billion, compared with BofA’s estimate of €5.6 billion.

Passive strategies saw €3 billion in inflows, below the €4.2 billion estimate. Alternative strategies posted €2.4 billion in inflows, ahead of the €2.1 billion projection, supported by infrastructure products and liquid real assets. 

Real estate strategies continued to post outflows. Active equity and active fixed income saw net outflows of €1 billion and €1.3 billion, respectively.

Reported costs were €442 million, in line with expectations. The reported cost-to-income ratio for the quarter was 59.2%, compared with 60.7% in the first half and below the consensus estimate of 61.8%. 

DWS reaffirmed its guidance for a reported cost/income ratio below 61.5% for the full year.

The company maintained its 2025 earnings per share target of €4.50 after reporting €2.06 for the first half.  “DWS said flow momentum has picked up again in early Q325,” BofA said in a note

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