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Deutsche Bank subsidiary DWS records a decline in profits despite billions in inflows in 2023
Decline in profits at DWS despite high inflows of funds The Deutsche Bank fund subsidiary DWS recorded a decline in profits in 2023, although billions in money flowed into its funds. Adjusted earnings fell by three percent and adjusted pre-tax profit fell by eleven percent. IT conversion costs were a significant factor in this decline. There were also renewed investigations into greenwashing allegations. According to a report from www.finanzen.net, the company's adjusted costs consumed 64 percent of revenue in 2023, compared to just 60.6 percent the previous year. The expensive conversion of the computer systems had a significant impact on profits and will also cause costs in the coming years. These additional costs…
Deutsche Bank subsidiary DWS records a decline in profits despite billions in inflows in 2023
Decline in profits at DWS despite high cash inflows
The Deutsche Bank fund subsidiary DWS recorded a decline in profits in 2023, although billions in money flowed into its funds. Adjusted earnings fell by three percent and adjusted pre-tax profit fell by eleven percent. IT conversion costs were a significant factor in this decline. There were also renewed investigations into greenwashing allegations.
According to a report by www.finanzen.net,
The company's adjusted costs consumed 64 percent of revenue in 2023, compared to only 60.6 percent in the previous year. The expensive conversion of the computer systems had a significant impact on profits and will also cause costs in the coming years. These additional costs will impact recurring profits, potentially impacting market performance and investor confidence.
The renewed investigations into greenwashing allegations could also continue to strain DWS's image. The financial impact of such investigations and possible fines could adversely affect the Company's balance sheet and future earnings. This could also undermine the trust of investors and customers in DWS.
The DWS share temporarily lost 4.95 percent to 36.10 euros in XETRA trading, which is due to the disappointing result and the negative forecasts. These developments could impact the industry as a whole by affecting investor confidence in mutual funds and financial companies.
These developments show that a company's financial performance and image are crucial to its success and long-term stability. How DWS deals with the challenges will be crucial to restoring investor confidence and achieving long-term success.
Read the source article at www.finanzen.net