Deutsche Bank AG (DB.US) CEO Christian Sewing has outlined an ambitious three-year strategic plan, raising key profitability targets and pledging higher shareholder dividends. Germany’s largest bank announced on Monday that it aims to achieve a return on tangible equity (RoTE) exceeding 13% by 2028, up from its current target of "over 10%" for this year.

Additionally, Deutsche Bank plans to increase its shareholder payout ratio to 60% of profits starting next year (up from 50%), with surplus cash directed toward "growth initiatives" or additional dividends. Since taking the helm in 2018, Sewing has steered the bank from years of losses, legal setbacks, and a crisis of confidence to record profits. Following a painful restructuring early in his tenure, higher interest rates and favorable market volatility have bolstered the bank’s trading business, sending its shares soaring over sixfold from their lows five years ago.

However, sustaining this momentum may prove challenging as the tailwinds from rate hikes fade and economic uncertainty persists. The bank has slightly revised its compound annual revenue growth target downward from 5.5%-6.5% to "above 5%."

"Our long-term vision is to become Europe’s champion, and we have all the necessary conditions to achieve this," Sewing stated. To further reduce its cost-to-income ratio below 60% (from the current sub-65% target), the bank plans to cut €2 billion (~$2.3 billion) in total costs over the coming years.

Despite its strong stock performance, Deutsche Bank remains one of Europe’s least profitable lenders and trades below book value—a rarity among peers. This could limit Sewing’s ability to pursue bolder moves amid a wave of European banking consolidation.

The bank will invest €1.5 billion over the next three years, including €600 million in technology, focusing on asset management, payments & services, and advisory. It also emphasized leveraging its "leading position in markets and financing."

Under Sewing’s leadership, Deutsche Bank exited equities trading to refocus on its fixed-income strengths, integrated Postbank’s retail operations, and strengthened its corporate banking division. Apart from acquiring UK broker Numis, Sewing has largely avoided major M&A deals.

The bank confirmed it is on track to meet all 2024 targets, including €32 billion in revenue, RoTE above 10%, and a sub-65% cost-to-income ratio.

CFO James von Moltke, who played a pivotal role in restoring confidence during the turnaround, noted this investor update marks his final appearance before his planned departure in June 2026 when his contract expires. Earlier this year, Deutsche Bank extended Sewing’s contract to April 2029, effectively closing von Moltke’s path to further advancement at the bank.