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Investing.com -- Shares of DWS Group (ETR:DWSG) rose more than 3% on Wednesday after the German asset manager reported stronger-than-expected third-quarter results and reaffirmed its full-year targets.
“DWS has printed well in 3Q, with a 7% profit before tax beat (€319m) driven by 2% higher net revenues and 1% lower costs,” Jefferies said in a note
The company’s cost-to-income ratio stood at 57.7%, below both consensus expectations of 59.6% and its full-year goal of less than 61.5%.
Net revenues totaled €754 million, 2% ahead of estimates, supported by stronger management and other revenues.
Management fees rose to €655 million, 1% higher than consensus, with the fee margin steady at 25.2 basis points.
Performance and transaction fees were in line at €50 million. Other revenues reached €48 million, 10% ahead of expectations, “driven by NII (+ €21m), Harvest’s contribution of €16m (above the average of 3Q24-2Q25 of €12m), and FVoG (+€10m),” Jefferies said.
Operating costs declined to €435 million, helped by lower compensation and general administrative expenses. Jefferies noted that “costs 1% lower than cons; CIR 57.7%; PBT 7% ahead.”
Assets under management reached €1,054 billion at the end of the quarter, up 8% from a year earlier and 2% above consensus of €1,038 billion.
DWS reported long-term net inflows of €10 billion, “e ~90% skewed to retail and almost entirely driven by Xtrackers,” as per Jefferies.
Passive products recorded quarterly net inflows of €10.3 billion, up from €3 billion in the previous quarter, supported by institutional mandates.
Active management reported net outflows of €0.3 billion, reflecting withdrawals from active equity and fixed multi-asset funds, partly offset by inflows into systematic and quantitative investments and fixed income.
Alternatives generated net inflows of €0.3 billion, led by infrastructure and liquid real assets, while real estate funds saw continued outflows.
DWS maintained its full-year 2025 guidance, reiterating targets of earnings per share of €4.50 and a cost-to-income ratio below 61.5%. For the first nine months of 2025, earnings per share stood at €3.16.
The company’s investment performance metrics were mixed. Jefferies highlighted a “notable decrease in 3Y outperformance,” which dropped to 54% from 68% in the previous quarter. One-year and five-year outperformance were steady at 58% and 67%, respectively.