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Investing.com -- Shares of DWS Group fell by 4% on Wednesday after the German asset manager reported second-quarter profit before tax of €305 million, missing the average analyst consensus of €335 million, as performance and transaction fees declined following a timing effect from an infrastructure performance fee booked in the first quarter.
Total net revenues came in at €773 million, below the consensus average of €784 million, also reflecting the timing effect that pulled performance and transaction fees lower after the first-quarter infrastructure fee.
Costs rose to €468 million, above the consensus average of €449 million for total noninterest expenses, mainly driven by expenses related to business growth and the increase in DWS’ own share price, while compensation and benefits costs were reduced.
The Cost-Income Ratio came in at 60.5%, worse than the consensus average of 57.3%, driven by the growth-related cost uptick during the quarter.
Net income attributable to DWS Group shareholders was €237 million, in line with the consensus average of €236 million.
Total Assets under Management reached a record €1.19 billion, above the consensus average of €1.14 billion, driven by supportive market developments, long-term net inflows and positive impacts from exchange-rate movements.
Long-term net flows were €11.6 billion, below the consensus average of €12.7 billion. Including Cash products and Advisory Services, total net flows were €24.8 billion, above the consensus average of €15.6 billion, driven by Passive including Xtrackers flows and Cash products and supported by Active Equity and Active SQI.
For the first half of 2026, DWS reported long-term net inflows of €18.2 billion and total net flows of €35.8 billion, which the company said was a new first-half record.
Revenues for the first half rose 6% year-on-year to €1,594 million, while profit before tax rose 16% year-on-year to €682 million and net income rose 21% year-on-year to €501 million.
The half-year Cost-Income Ratio improved 3.5 percentage points year-on-year to 57.2%, which the company said was in line with its expectation for 2026.
In July, DWS announced that the federal states of Hesse and Baden-Wuerttemberg and the German federal government had mandated a consortium led by DWS to launch and manage an index-based fund for pension reserves, with a targeted volume of between €3 billion and €6 billion.
DWS reaffirmed the expectations outlined in its 2025 Annual Report, assuming a supportive market environment.
