DWS shares fall as asset manager’s inflows underwhelm

Net inflows including cash were €2.3bn (£2bn)

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Reus, Spain – February 20, 2016: Deutsche Bank office, with white text and logo, in the city of Reus at Spain, on februrary 20, 2016


Shares in DWS slid 3% to €27.5 (£24) on Wednesday morning after the firm published its third quarter update.

The asset management arm of Deutsche Bank reported net inflows including cash of €2.3bn (£2bn) in the three months to 30 September, which undershot forecasts.

Total assets under management at the end of the quarter edged up by €1bn to €860bn (£750bn). The firm said net inflows and positive effects from exchange rate movements slightly exceeded the negative impact from market developments.

Adjusted revenues for the period were €666m (£580bn) versus €668m (£582bn) the previous quarter. The firm described the performance as “stable” amid a “challenging market environment”.

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Adjusted profit before tax was at €246m (£214bn) in the third quarter, down 6%.

The update comes a little over month after DWS was fine $25m (£16.5m) by American regulator the SEC for anti-money laundering violations and misstatements regarding ESG investments.

Chief executive Stefan Hoops commented: “We continue our steady climb up the mountain and move forward with our disciplined strategy implementation.

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“In a quarter with ongoing geopolitical tensions and lower risk appetite on the client side, we achieved solid results with stable revenues, a higher net income and continued net inflows.

“For the first nine months, we delivered good financial results with net inflows excluding cash of €21bn driven by strong net new assets in our growth area, passive including Xtrackers. Thanks to our disciplined cost approach we were able to reduce our adjusted costs compared year-on-year despite high inflation rates.” 

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