FRANKFURT, Dec 7 (Reuters) – Deutsche Bank-owned (DBKGn.DE) fund manager DWS (DWSG.DE) on Wednesday said it would divest businesses and reduce its footprint in measures that would create 100 million euros in savings by 2025 to be reallocated to growth areas.
The announcement, which includes new profit and cost targets for the years ahead, comes as the German company tries to move on from allegations that it misled investors over its green credentials. It has repeatedly denied those allegations.
Later on Wednesday, the new Chief Executive Officer Stefan Hoops will brief investors and analysts on the strategy.
“We are committed to self-funding our changes by reallocating financial resources freed up by divestments, delayering and cost initiatives,” he said in a statement.
DWS is aiming for earnings per share of 4.50 euros by 2025 and an adjusted cost-to-income ratio of below 59%.
That compares with 2021, which was a particularly strong year, of 3.90 euros per share and a record low cost-to-income ratio of 58.1%.
On Tuesday, DWS said it would propose a special dividend of up to 1 billion euros in 2024 and increase its dividend payout ratio through 2025.
Reporting by Tom Sims and Marta Orosz; Editing by Cynthia Osterman
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