FRANKFURT / LONDON (IT BOLTWISE) – Deutsche Bank is planning a strategic realignment to significantly increase its profitability by 2028. With a new return target of over 13 percent, the institute wants to close the gap to more profitable European competitors. Shareholders should benefit from higher dividends from 2026 while the bank focuses on particularly profitable business areas.
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Deutsche Bank has ambitious plans to increase its return on equity to over 13 percent by 2028. CEO Christian Sewing announced this goal at an investor day in London. The bank aims to close the gap with more profitable European competitors and to establish itself as a European champion in the long term. A central component of this strategy is increasing distributions to shareholders, who will receive a larger share of profits from 2026.
To achieve these goals, Deutsche Bank plans to increase its revenues to 37 billion euros from an estimated 32 billion euros this year. The institute is relying on its strengths in its home market of Germany, where it wants to generate two billion euros of additional income. The bank also wants to reduce the ratio of costs to income from the current 65 percent to under 60 percent, which means that it wants to spend a maximum of 60 cents for every euro earned.
A key aspect of the strategy is the increased use of artificial intelligence and additional savings of two billion euros per year. These measures are necessary to slow the expected cost increase from 20.6 to 22 billion euros. The bank plans to invest 70 percent of its equity in particularly profitable business areas, while withdrawing capital from less profitable areas.
Deutsche Bank’s private customer division will also be affected by the realignment. The head of this division, Claudio de Sanctis, announced that the bank would withdraw from markets outside Germany where it is not large enough to achieve its profitability targets. The bank has been pursuing this strategy for some time, as evidenced by the discontinuation of the home financing offering under its DSL Bank brand this year.
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