Results summary for the year 2023, communicated by Christian Sewing
Bank Announces 2024 Business Strategy for Growth and Efficiency
The bank has unveiled its strategic plan for 2024, focusing on becoming more focused, efficient, and powerful. Christian Sewing, the bank's CEO, outlined key elements of the strategy aimed at enhancing the bank's core strengths, improving profitability, and ensuring sustainable growth beyond 2025.
The strategy begins with strengthening divisional performance. The Corporate Bank, Investment Bank, Private Bank, and Asset Management divisions all reported strong double-digit profit growth and achieved returns on tangible equity (RoTE) of around 10% or more in the first half of 2025. This reflects a commitment to maintaining profitability and efficiency.
The bank also aims to capitalize on emerging opportunities. With increased client interest in Germany and Europe, the strategy aims to build stronger bridges for companies and investors within these regions, indicating a geographic and client-focus refinement.
The strategy also emphasizes the targeted use of innovative technologies. Integrating new technologies such as artificial intelligence is intended to unlock new possibilities, improve operational efficiency, and drive innovation across the bank.
In terms of cost and revenue ambitions, the strategy confirms adherence to revenue growth and cost management targets, contributing to optimism about meeting annual goals despite volatility and uncertainty.
The bank's success in 2023 was due in part to the efforts of the teams in the Investment Bank and the Asset Management business. The bank reported a pre-tax profit of 5.7 billion euros for 2023, a slight increase from 2022. The bank's revenues for 2023 were 28.9 billion euros, a six percent increase from 2022.
The bank has made investments in innovative new products, market coverage, and advisory capacities, including the acquisition of corporate broker Numis in the United Kingdom. The bank has raised its revenue growth target for the period between 2021 and 2025 from 3.5 to 4.5 percent to between 5.5 and 6.5 percent.
The bank's CEO, Christian, expressed optimism about the bank's future and its ability to make 2024 another strong year. The bank's results, targets, and strategies will be discussed in the annual media conference today. The bank's ambition is to pay a dividend of one euro per share for the financial year 2025, assuming it meets its financial targets and capital distribution goal of 50 percent.
The rise in global interest rates benefited the bank, most evident in the Corporate Bank and the Private Bank, where the highest rate of revenue growth occurred in 2023. The bank has implemented further efficiency measures in 2023, with the impact expected to be seen this year, and aims to reduce costs again in the future. The bank's new revenue target for 2025 is about 32 billion euros. The bank aims to achieve a cost-income ratio below 62.5 percent and a post-tax return on tangible equity of more than 10 percent by the end of 2025.
Christian attributes the bank's success to setting clear goals, optimism, dedication, and a collaborative spirit. He believes that these qualities can create something good in the current times of social polarisation.
The bank's annual media conference will take place at 9 a.m. CET today, and a Quarterly Check-In will be held at 2 p.m. CET on the intranet.
[1] Source: Bank's 2024 Business Strategy document
The bank's 2024 business strategy involves enhancing profitability and sustainability across all divisions, including the Asset Management business, within finance and business, as outlined in the strategic plan. The bank aims to reduce costs and achieve a post-tax return on tangible equity of more than 10% by the end of 2025, demonstrating a commitment to asset management and financial efficiency.
