Deutsche Bank Unveils Ambitious 2028 Growth Strategy
Deutsche Bank, one of Europe’s leading financial institutions, has recently announced its strategic plan for growth and expansion by 2028. The strategy firmly focuses on increasing revenue, scaling the ‘Global Hausbank’, and boosting overall profitability. The plan is underpinned by disciplined capital management principles, technological investment, and business growth potential. The bank’s long-term vision is to become the leading European banking institution, backed by a strong global presence and leadership in key business segments.
Embracing Technological Innovation
Deutsche Bank intends to harness the power of artificial intelligence (AI) to maintain a resilient balance sheet, achieve market-leading returns, and expand its client base. The bank’s growth strategy is supported by the shareholder value add (SVA) performance framework, which provides a systematic approach to managing and measuring the bank’s performance.
CEO’s Vision for the Bank’s Future
Deutsche Bank CEO Christian Sewing shared his vision for the organization, stating, “As the Global Hausbank, we plan to grow by building on our position as the market leader in Germany, the European alternative in global banking, and the gateway to Europe for clients around the world. Our long-term vision is to be the European champion, and we have everything in our hands to make this a reality.”
Financial Goals and Objectives
By 2028, Deutsche Bank aims to achieve a return on tangible equity (RoTE) of over 13%, a significant increase from the 2025 target of above 10%. Additionally, the bank projects a compound annual revenue growth of above 5%, with revenues expected to rise from an estimated €32bn in 2025 to around €37bn in 2028. The cost/income ratio target is set below 60% by 2028, refining the 2025 target of below 65%.
Investing in Progress
Deutsche Bank plans to continue investing in business growth and technological advancements. The bank will focus on targeted programmes designed to deliver gross cost efficiencies of around €2bn. The bank intends to maintain a Common Equity Tier 1 (CET1) capital ratio within an operating range of 13.5% to 14% and plans to increase the payout ratio to 60% of net profit attributable to shareholders from 2026.
Driving Focused Growth
As per the bank’s growth strategy, focused growth will be a central pillar from 2026 to 2028, capitalizing on its home market strength. The bank plans to integrate its Global Hausbank offering and leverage its capabilities to assist clients in a changing environment. Plans also include investing in areas such as asset gathering, payments, servicing, and advisory, targeting incremental revenues of about €5bn through 2028.
Increasing Shareholder Returns
Deutsche Bank also aims to bolster shareholder returns, planning to increase shareholder payouts to 60% of net profit from 2026. Further distributions are possible when the CET1 ratio is sustainably above 14%. Deutsche Bank CFO James von Moltke expressed confidence in the bank’s ability to meet its financial targets for 2025, laying the foundation for its journey towards European leadership.
In September, Deutsche Bank, in partnership with DWS and Partners Group, unveiled plans to introduce a private markets fund for its qualified private clients. This initiative signifies Deutsche Bank’s commitment to offering diverse and innovative financial solutions to its clients.
Source: Here
