In its first Annual Report DWS Group reports final and audited figures for the business year 2018 today. The main key figures in the consolidated income statement are unchanged compared to the preliminary figures communicated on 1 February 2019.
“2018 was an inflection year for DWS as we moved from being a division of Deutsche Bank to a publicly listed asset manager. It was a year where we saw many positive developments within our business but also one marked by increasing headwinds for the wider asset management industry. These challenges were evident in our annual result”, said Asoka Woehrmann, Chairman of the Executive Board.
Woehrmann added: “Given the market environment, cost control was an important lever for DWS in 2018, and will continue to be in 2019. Last year, we managed our costs well, lowering them faster than expected and exceeding our full year cost savings guidance. Overall, we achieved a net profit of EUR 391 million in the financial year 2018.
The Executive Board of DWS has decided to use this to propose to the Annual General Meeting a dividend of EUR 1.37 per share for the financial year 2018, in line with our medium term guidance for the payout ratio.”
The Annual Report also includes the first Non-Financial Report, which is integrated in our Sustainability Report. It is available under the following link: go.dws.com/Sustainability_Report_2018. Therein DWS provides insights on sustainable developments within the company last year, subdivided according to the topics „Clients and Products“, „People Strategy“, „Compliance and Control“, and „Environmental Footprint and Social Commitment“.
We expect Assets under Management (AuM) at the end of 2019 to be higher compared to the end of 2018. Net flows are expected to be positive. We remain constructive on equity markets. Following the significant market decline in the fourth quarter, we expect 2019 revenues to be in line with 2018. While we anticipate the management fee margin to be further challenged following one of the worst equity performances ever in December, Management fees are assumed to be essentially flat year-over-year. In 2019, we will continue to keep our focus on tight cost management, resulting in slightly lower costs and cost-income ratio compared to 2018. Through accelerated cost saving initiatives and corresponding efficiency gains, we expect to achieve the top end of our EUR 125 to 150 million medium term gross cost savings target by the end of 2019.
The 2018 Annual Report is to be found on the internet at go.dws.com/Annual_Report_2018.
Detailed information about the remuneration of the board members can be found in the Compensation Report (pages 41 to 52).
For further information please contact:
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About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 662bn of assets under management (as of 31 December 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be 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 asset classes and 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, which guides our strategic investment approach.
DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, we are local while being one global team.
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. 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.