(Bloomberg) -- DWS Group, the investment arm of Deutsche Bank AG, reported outflows in the second quarter but raised the full-year outlook for earnings per share.
The German money manager said in a filing Wednesday that outflows were mainly concentrated in low-margin areas. Overall, DWS recorded total net outflows of €18.7 billion ($20.3 billion), but pointed to “long-term net inflows” of €1.9 billion in the first half of the year.
Despite those outflows, adjusted revenue increased by 4% from the previous three months to €678 million, driven by higher management fees and other revenues, while adjusted pretax profit rose 8% to €249 million, it said.
Shares rose as much as 2.7% in Frankfurt, the biggest intraday gain since June 3. The stock is still down about 5% this year.
Clients pulled money from DWS’s alternatives business for the third consecutive quarter, with net outflows reaching €1.4 billion. DWS has been beefing up the division in a bid to entice more lucrative fees and fresh capital. As part of those efforts, the firm said it’s made further organizational changes and strategic new hires.
“Today’s results give us confidence to raise our financial outlook for 2024,” Chief Executive Officer Stefan Hoops said in the statement. But the firm didn’t provide details of the new forecasts for the full year.
The firm’s infrastructure funds generated net inflows, while so-called liquid real assets and real estate funds saw net outflows, continuing the trend from previous quarters.
Other highlights:
- First-half net income up 9% from year earlier to €308 million
- Adjusted cost-income ratio improved 1.5 percentage points to 63.2% in second quarter from end-March
- Assets under management at €933 billion, down from €941 billion in the previous quarter
(Updates with shares in fourth paragraph.)
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