German asset manager DWS, which previously operated as part of Deutsche Bank, has just released its financial results for the fourth quarter of 2024.

DWS achieved its second-best quarterly revenues and adjusted pre-tax profits in the fourth quarter of 2024, reaching record high assets under management and revenues and increasing profit year-on-year in 2024.

Adjusted revenues rose by 6 per cent to a new record of €2,747 million ($2,861 million) in 2024, compared with €2,603 million in 2023, the firm said in a statement. This was mainly due to increased management fees, as a result of higher average assets under management. Higher performance and transaction fees also supported the increase of revenues. In the fourth quarter of 2024, adjusted revenues increased by 7 per cent to €731 million, compared with €685 million in the third quarter. 

Adjusted profit before tax rose by 10 per cent to €1,035 million in 2024, up from €937 million in 2023. In the fourth quarter of 2024, the adjusted profit before tax increased by 12 per cent quarter-on-quarter to €293 million, from €262 million in the third quarter.  

Profit before tax went up by 23 per cent to €957 million in 2024, from €777 million in 2023. In the fourth quarter of 2024, the profit before tax increased by 8 per cent quarter-on-quarter to €265 million, from €245 million in the third quarter.

After tax, DWS posted a 19 per cent higher net income of €655 million for the financial year 2024, from €551 million in 2023. The executive board will propose an increased ordinary dividend of €2.20 per share for the 2024 financial year, compared with €2.10 in 2023. With this, DWS’ shareholders will receive a higher ordinary dividend for the sixth consecutive year. 

Long-term assets under management also rose by €40 billion to €900 billion in the fourth quarter of 2024, from €860 billion in the third quarter. This was mainly due to the favourable effect of exchange rate movements and net inflows. Compared with long-term AuM of €83 billion at the end of 2023, the annual increase of €118 billion resulted from benign market developments, net inflows and positive impacts from exchange rate movements in 2024. 

Total assets under management also increased by €49 billion reaching a new record level of €1,012 billion in the fourth quarter of 2024, from €963 billion in the third quarter. Compared with AuM of €896 billion at the end of 2023, total AuM rose by €115 billion. The drivers for the quarterly and annual development were the same as for long-term AuM, the firm continued.

Long-term net flows meanwhile doubled to €32.9 billion in 2024, from €16.5 billion in 2023. Including the more volatile flows into cash products and flows in advisory services, total net flows were at €25.7 billion, compared with €28.3 billion in 2023. Total net inflows in 2024 were mainly driven by passive including Xtrackersflows on record level.

ESG products also attracted higher net inflows of €6.1 billion in 2024, the firm added. In the fourth quarter, DWS recorded strong long-term net inflows of €14.4 billion, including cash and advisory services €18.4 billion. 

"Based on strong financial results for  2024, we reaffirm our ambitious financial targets for 2025 and have set new ones for the mid-term. We remain determined to create long-term shareholder value – and will never compromise  long-term growth investments for short-term financial results," Stefan Hoops, CEO of DWS said.