In March 2017, we announced an updated strategy that included changes in the bank’s business strategy, a capital increase and updates to our financial targets. For adjusted costs, we had set targets for 2018 and 2021, respectively, for which we provide an update in the paragraph for adjusted costs below. Our remaining key performance indicators we aim to achieve in the long-term, consistent with a simpler and safer bank. In 2018, we will continue to execute our strategy and aim to improve profitability and margins. Cost management will continue to be key to our strategy and we intend to intensify our efforts in this respect in 2018.
Our most important key performance indicators are shown in the table below:
Key Performance Indicators
In 2018, we expect slight increases in RWA, notably from operational risk, methodology changes, regulatory inflation and selected business growth. By year-end 2018, our CRR/CRD 4 Common Equity Tier 1 capital ratio (fully loaded) is expected to be above 13 %, and our CRR/CRD 4 leverage ratio (phase-in) to stay above 4 %.
For 2018, we expect revenues to be higher than in 2017. The outlook reflects our expectation of a strong macroeconomic environment as we expect global economies to perform well. We anticipate above trend growth in the U.S. and Eurozone. Prospects of interest rate normalization set the stage for improved revenues. We expect further rate hikes in the U.S., and the ECB net asset purchase program to end in 2018. Market volatility is likely to rise which should allow the return of trading activities in the financial markets back to more normal levels.
We are committed to work towards our target of 10 % Post-tax Return on Average Tangible Equity in a normalized environment and on the basis of the achievement of our cost targets. The successful ongoing implementation of our strategy including critical restructuring of a number of our businesses and the implementation of a cost reduction program remains key to reaching that target. We currently expect a moderate improvement in our Post-tax Return on Average Tangible Equity in 2018, largely reflecting an improved outlook for revenues and expected adjusted cost improvements, despite our expectation that credit costs and litigation expense are likely to increase in 2018, and restructuring costs remain at levels similar to 2017.
In March 2017, we announced an adjusted costs target of circa € 22 billion for 2018 including circa € 900 million of planned cost savings through business disposals. While we made progress on planned disposals, some of them have been delayed or in some cases suspended. As a result, we currently do not expect the planned € 900 million of cost savings to materialize in 2018. Furthermore, we expect higher costs from Brexit and MiFID II implementation in 2018. Additionally, some of the cost synergies we expected to materialize in 2018 from the merger of Postbank into our German banking entity have been delayed as we expect this merger to be completed in the second quarter of 2018. Those savings are now expected to be realized in 2019. Nonetheless, we have been taking additional measures to offset these impacts and also benefit from current foreign currency rates in our reported costs relative to our earlier assumptions. Therefore, we now expect our adjusted costs in 2018 will be circa € 23 billion, which reflects our original € 22 billion target plus the cost impact of the delayed and suspended business disposals. We target a further reduction in our adjusted costs in the years to 2021. This target however depends in part on our ability to execute our aforementioned business disposals successfully and within the planned timeframes.
We target a competitive dividend pay-out ratio for the financial year 2018 and thereafter. These dividend payments are subject to our maintaining sufficient levels of distributable profits under our stand-alone financial statements in accordance with German accounting rules (HGB) for the fiscal year 2018.
By the nature of our business, we are involved in litigation, arbitration and regulatory proceedings and investigations in Germany and in a number of jurisdictions outside Germany, especially in the U.S. Such matters are subject to many uncertainties. While we have resolved a number of important legal matters and made progress on others, we expect the litigation and enforcement environment to remain challenging in the short term. Litigation expenses in 2017 were relatively low as a result of our successful efforts in resolving a number of matters below estimated provisions. For 2018, and with a caveat that forecasting litigation expense is subject to many uncertainties, we expect litigation to be meaningfully higher than in 2017, but well below the elevated levels observed over the past number of years.