DWS plans divestments and special dividend
DEUTSCHE Bank-owned fund manager DWS on Wednesday (Dec 7) said it would create 100 million euros (S$142.2 million) in savings by 2025, and propose a dividend of up to one billion euros in 2024.
Measures to accrue savings include divesting businesses and reducing the bank’s footprint, it said, adding that the monies would be reallocated to growth areas.
The fund manager also shared new profit and cost targets for the years ahead. It is aiming for earnings per share (EPS) of 4.50 euros by 2025, and an adjusted cost-to-income ratio of below 59 per cent.
In 2021, which was a particularly strong year, DWS earned 3.90 euros per share; it also had a record-low cost-to-income ratio of 58.1 per cent.
New chief executive Stefan Hoops was expected to brief investors and analysts on the new strategy later on Wednesday. “We are committed to self-funding our changes by reallocating financial resources freed up by divestments, delayering and cost initiatives,” he said.
The announcements came as the German company tries to move on from allegations that it had misled investors over its green credentials. It has repeatedly denied those allegations, and said on Wednesday that it was nearing completion of an internal investigation. It added that it was working closely with authorities to resolve the matter.
Shares of DWS rose 3.1 per cent in early Frankfurt trade. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
