Deutsche Bank unveils more ambitious cost and profit targets for 2028

It wants to increase revenue to around 37 billion euros in 2028, up from around 32 billion euros in 2025

Deutsche Bank on Monday (Nov 17) unveiled new profit and revenue targets for the next three years as Germany’s largest lender tries to convince investors that its years-long recovery remains on course, and it can compete with Wall Street titans.

The slew of targets for 2028 is the third major programme under CEO Christian Sewing, who took over the bank’s helm as it was teetering after years of losses.

Sewing has stabilised the bank, returning it to consistent profit, but some investors criticise Deutsche Bank for overreliance on its global investment bank and weakness at the retail division.

Deutsche is now in the final stretch of its current three-year plan. Most analysts believe it will meet its goals.

Among key elements of the plan unveiled on Monday, Deutsche Bank is aiming for so-called return on tangible equity – an important profit metric – of more than 13 per cent by 2028, up from the current goal of more than 10 per cent.

It wants to increase revenue to around 37 billion euros (S$55.86 billion) in 2028, up from around 32 billion euros in 2025.

It is also striving for a cost-to-income ratio of below 60 per cent by 2028, down from its current target of below 65 per cent.

“Our long-term vision is to be the European champion,” Sewing said in a statement.

The bank unveiled its last three-year plan in 2022, just weeks into the Ukraine war, a period of great uncertainty that resulted in an energy crunch and soaring inflation but also in higher interest rates that fed bank profits.

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These days, bankers and regulators say uncertainty remains high due to a global trade war, credit risks, high debt levels, artificial intelligence and a slumping domestic economy.

The latest plan is less sweeping than Sewing’s first big strategy overhaul in 2019, which downsized the investment bank, focused on corporate clients and promised to slash 18,000 jobs, though in the end the bank did not cut that many as business picked up again.

In 2022, Sewing’s second plan included targets through the end of this year. The bank is on track to meet them, though Deutsche did dump its original and more ambitious cost-to-income target as the bank said it wanted to invest in growth, rather than keep paring. REUTERS

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