FRANKFURT / LONDON (IT BOLTWISE) – Deutsche Bank has presented ambitious plans to increase its return to over 13 percent by 2028. It is increasingly relying on artificial intelligence to automate processes. Despite these announcements, the market reacted cautiously and the shares fell by 2.5 percent.
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Deutsche Bank recently presented its ambitious plans for the coming years, which envisage a significant increase in return on tangible equity to over 13 percent by 2028. A central component of this strategy is the increased use of artificial intelligence to drive automation and thus reduce costs. These measures are intended not only to increase efficiency, but also to significantly improve the profit margins of the financial institution.
Under the leadership of Christian Sewing, Deutsche Bank plans to increase revenue from the current around 32 billion euros to around 37 billion euros by 2028. At the same time, expenses are expected to increase by two percent annually to around 22 billion euros, regardless of interest. The goal is to reduce costs to less than 60 percent of revenues, a significant improvement over the current mark of 65 percent.
Analysts are surprised by these optimistic goals. According to a survey by Bloomberg, experts had previously only forecast income of just under 35 billion euros and a return of 10.5 percent for 2028. Deutsche Bank also plans to increase dividends from 2026 by distributing 60 percent of profits, compared to the current 50 percent.
The integration of artificial intelligence into Deutsche Bank’s business processes is intended not only to promote automation, but also to slow down cost increases. Sewing is confident that the target margins can even be exceeded. Nevertheless, the market reaction to these announcements remained muted. After a brief price increase, Deutsche Bank shares fell by 2.5 percent to 31 euros, making them one of the weaker DAX stocks.
Deutsche Bank’s fund subsidiary DWS confirms that it is on track to achieve its annual targets. CEO Stefan Hoops expressed the goal of increasing earnings per share to 4.50 euros by 2025 by increasing earnings by twelve percent and keeping costs stable. These measures are intended to strengthen Deutsche Bank’s position in the global financial market and secure its long-term competitiveness.
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