Deutsche Bank reveals plans for further share buyback, reaffirms 2025 targets

Investing.com -- Deutsche Bank (XETRA:DBKGn.DB / NYSE: DB) has disclosed the content of speeches to be delivered by its Chairman, Alexander Wynaendts, and CEO, Christian Sewing, at the Annual General Meeting on May 22, 2025.

CEO Sewing reassured that the bank is on course to achieve its 2025 financial objectives, including a return on tangible equity exceeding 10 percent and a cost/income ratio below 65 percent. The promising results of the first quarter of this year, despite economic uncertainties that arose in early April, confirm that the bank is on the right path, Sewing said.

Deutsche Bank also announced its application for an additional share buyback and updated its capital objective. The bank plans to propose a dividend of 68 cents per share at this year’s AGM, marking a 50 percent increase from the previous year. A share buyback program worth 750 million euros is currently in progress, which would increase the total capital distributions to shareholders to €5.4 billion since 2022. Sewing stated that the bank has applied to the European Central Bank for another share buyback for the second half of the year, made possible by the bank’s robust capital base and strong organic capital generation.

The bank reported a 13.8 percent common equity tier 1 (CET1) ratio at the end of the first quarter. Sewing stated that the bank’s CET1 ratio has been consistently above its target of around 13.0 percent for some time, and the bank aims to maintain this level and keep the CET1 ratio within an operational range of 13.5 to 14 percent. The existing policy to distribute 50 percent of net profit attributable to shareholders remains unchanged.

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Sewing also reiterated the bank’s intention to distribute over 8 billion euros for the years 2021 to 2025, payable in 2022-2026. The bank plans to use its increasing financial flexibility to continue enhancing returns to shareholders, while investing in growth and, most importantly, its clients.

Both Wynaendts and Sewing believe that Deutsche Bank is well-equipped to serve clients in the current geopolitical and macroeconomic environment. Wynaendts highlighted the bank’s leading position in its home market and its ability to leverage capital market expertise and a global network in a way that few banks can. Sewing added that Deutsche Bank is ready to facilitate infrastructure investments with the help of new fiscal leeway and to support strengthening Europe’s defense capabilities.

Sewing also sees a growing demand for a European alternative in global banking. He concluded by stating that as the largest bank in Europe’s largest economy, Deutsche Bank is ideally positioned to fulfill this role.

Deutsche Bank provides the speeches of its Chairman and CEO one week before the AGM as a service to its shareholders. The full texts can be found on the Deutsche Bank AGM website.

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