German-based asset manager DWS, which previously operated as part of Deutsche Bank, on Friday released its financial results for the first half of 2023.

DWS's assets under management (AuM) rose by 3 per cent to €859 billion in the second quarter of 2023, compared with €833 billion in June 2022 and €821 billion in the last quarter of 2022. This increase was mainly a result of market developments and net inflows, with exchange rate movements having had a negative impact on the AuM, the firm said in a statement.

DWS net revenues fell by 5 per cent in the first six months of 2023 reaching €1,292 million ($1,423 million), down from €1,360 million in the same period a year earlier. Adjusted revenues decreased year-on-year by 6 per cent to €1,278 million, due to lower management fees predominately caused by declining markets in 2022, the firm continued. Nevertheless, DWS improved its financial results quarter-on-quarter, seeing a rise in adjusted revenues of 10 per cent to €668 million in the second quarter, up from €610 million in the first quarter of the year. This was driven by higher performance and transaction fees and supported by increased management fees, the firm said.

Profits before tax declined by 20 per cent in the first six months of 2023 totalling €398 million, compared with €496 million in 2022. Adjusted profit before tax decreased by 16 per cent year-on-year and surged by 27 per cent to €260 million in the second quarter of the year, compared with the first quarter. Net income dropped in the first half of 2023 year-on-year by 17 per cent to €283 million from €341 million in the same period a year earlier, reflecting the more positive market conditions at the beginning of 2022, the firm continued.

Net inflows (ex cash) reached €10.4 billion (including cash €9.3 billion) in the second quarter of 2023, and €19.2 for the first half of the year. These net new assets came from all regions – EMEA, the Americas and APAC – and from institutional as well as retail investors, the firm said. ESG products attracted increased net inflows of €1.9 billion in the second quarter.

“As part of our new strategy, we took restructuring pain early and have now earned the right to focus on positive growth. In the second quarter, we saw strong net inflows across all regions. We will continue with the disciplined implementation of our game plan,” DWS CEO Stefan Hoops said. 

DWS now expects assets under management at the end of the year and adjusted costs for 2023 to increase only slightly compared with the previous year.