Deutsche Bank Sets RoTE Above 13% & Outlines Growth Plan by 2028

Core Insights - Deutsche Bank AG has launched a new multi-year strategy aimed at enhancing growth and profitability through 2028, as part of its Global Hausbank expansion plan [1] - The bank aims to achieve a Return on Tangible Equity (RoTE) of over 13% by 2028, with a target of more than 10% by 2025 [2][11] Financial Goals - Deutsche Bank projects compound annual revenue growth exceeding 5%, with revenues expected to rise from approximately €32 billion ($37.1 billion) in 2025 to around €37 billion ($42.9 billion) by 2028 [5] - The bank plans to generate about €2 billion ($2.3 billion) of its growth in Germany by leveraging its home-market leadership and capitalizing on fiscal stimulus and structural reforms [6] - A cost/income ratio target of below 60% is set for 2028 [6] Capital Management - Deutsche Bank intends to maintain its Common Equity Tier 1 (CET1) capital ratio within the range of 13.5%-14.0%, while selectively deploying capital to high-return businesses [7] - Starting in 2026, the bank plans to increase its payout ratio to 60% of net profit attributable to shareholders, up from the current 50% target for 2025 [8][9] Performance Outlook - The bank has reaffirmed its 2025 guidance, projecting full-year revenues of around €32 billion ($37.1 billion) and non-interest expenses of approximately €20.6 billion ($23.8 billion) [10] - The CET1 capital ratio is expected to be roughly 14% by the end of 2025, supporting the planned payout ratio of 50% of net income for that year [11] Market Position - Over the past six months, Deutsche Bank's shares have increased by 29.3% on the NYSE, outperforming the industry growth of 18.9% [12] - The company currently holds a Zacks Rank of 1 (Strong Buy) [13]