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T. Rowe Price(TROW) - 2024 Q4 - Annual Results
TROWT. Rowe Price(TROW)2025-02-05 12:10

Assets Under Management (AUM) - T. Rowe Price Group reported assets under management (AUM) of 1.61trillionasofDecember31,2024,withadecreaseof1.61 trillion as of December 31, 2024, with a decrease of 24.3 billion during Q4 2024[4] - The average AUM for 2024 was 1.56trillion,representinga14.71.56 trillion, representing a 14.7% increase from 1.36 trillion in 2023[2] - Assets under management (AUM) at December 31, 2024, reached 1,606.6billion,reflectingagrowthof11.21,606.6 billion, reflecting a growth of 11.2% from 1,444.5 billion at the beginning of the period[23] - The firm managed 1.61trillioninassetsundermanagementasofDecember31,2024,withapproximatelytwo−thirdsbeingretirement−related[18]FinancialPerformance−Dilutedearningspercommonshare(EPS)forQ42024were1.61 trillion in assets under management as of December 31, 2024, with approximately two-thirds being retirement-related[18] Financial Performance - Diluted earnings per common share (EPS) for Q4 2024 were 1.92, a 1.1% increase from 1.90inQ42023,whilethefullyearEPSwas1.90 in Q4 2023, while the full year EPS was 9.15, up 17.9% from 7.76[2]−TotalrevenuesfortheyearendedDecember31,2024,increasedto7.76[2] - Total revenues for the year ended December 31, 2024, increased to 7,093.6 million, up 9.8% from 6,460.5millionin2023[22]−NetincomeattributabletoT.RowePriceGroup,Inc.fortheyearendedDecember31,2024,was6,460.5 million in 2023[22] - Net income attributable to T. Rowe Price Group, Inc. for the year ended December 31, 2024, was 2,100.1 million, a 17.5% increase from 1,788.7millionin2023[22]−FortheyearendedDecember31,2024,thenetincomeattributabletoT.RowePriceGroup,Inc.was1,788.7 million in 2023[22] - For the year ended December 31, 2024, the net income attributable to T. Rowe Price Group, Inc. was 2,100.1 million, up from 2,139.5millionin2023,adecreaseof1.82,139.5 million in 2023, a decrease of 1.8%[34] - The diluted earnings per share for the year ended December 31, 2024, was 9.15, down from 9.33in2023,adecreaseof1.99.33 in 2023, a decrease of 1.9%[34] Client Flows and Outflows - The company experienced net client outflows of 19.3 billion in Q4 2024 and 43.2billionforthefullyear2024,reducingoutflowsbynearlyhalfyearoveryear[2]−ThefirmplanstocontinueexpandingitsETFbusinessandinsurancechannel,andisoptimisticaboutachievingpositiveclientflowsintheupcomingyear[2]RevenueSources−NetrevenuesforQ42024were43.2 billion for the full year 2024, reducing outflows by nearly half year over year[2] - The firm plans to continue expanding its ETF business and insurance channel, and is optimistic about achieving positive client flows in the upcoming year[2] Revenue Sources - Net revenues for Q4 2024 were 1.82 billion, an increase of 11.1% compared to 1.64billioninQ42023[9]−InvestmentadvisoryfeesforQ42024totaled1.64 billion in Q4 2023[9] - Investment advisory fees for Q4 2024 totaled 1.67 billion, reflecting a 16.1% increase from 1.44billioninQ42023[9]−InvestmentadvisoryfeesfortheyearendedDecember31,2024,totaled1.44 billion in Q4 2023[9] - Investment advisory fees for the year ended December 31, 2024, totaled 6,399.7 million, representing a 12.1% increase from 5,709.5millionin2023[23]OperatingExpenses−TotaloperatingexpensesforQ42024were5,709.5 million in 2023[23] Operating Expenses - Total operating expenses for Q4 2024 were 1,256.1 million, a slight increase of 0.1% from Q4 2023 and 7.2% from Q3 2024, while adjusted operating expenses rose by 6.2% year-over-year[12] - Compensation, benefits, and related costs in Q4 2024 amounted to 705.4million,reflectinganincreaseof8.6705.4 million, reflecting an increase of 8.6% from Q4 2023, primarily due to higher bonus accruals and employee benefits[12] - The company reported a total of 4,760.3 million in operating expenses for the year ended December 31, 2024, compared to 4,498.8millionin2023,anincreaseof5.84,498.8 million in 2023, an increase of 5.8%[34] Taxation - The effective income tax rate for the firm in 2024 was 24.3%, down from 26.3% in 2023, primarily due to lower valuation allowances recognized[14] - The firm estimates its effective tax rate for the full year 2025 will range from 23.0% to 27.0% on a U.S. GAAP basis[15] - The non-GAAP effective tax rate for the year was reported at 27.2%, with a quarterly rate of 28.5% for Q4 2023[36] Cash Flow and Capital Management - The company reported a net cash outflow of 39.5 million for the year, primarily due to net cash flows prior to manager-driven distributions[23] - The company reported net cash provided by operating activities of 1,685.6millionfortheyear,afteradjustmentsforvariousitems[26]−Thecompanyreportedanetcashusedinfinancingactivitiesof1,685.6 million for the year, after adjustments for various items[26] - The company reported a net cash used in financing activities of 936.6 million for the year, indicating significant outflows[26] Strategic Focus and Future Outlook - The firm plans to continue focusing on expanding its multi-asset and alternatives investment strategies to drive future growth[22] - The company plans to file its Form 10-K Annual Report for 2024 with the U.S. Securities and Exchange Commission in mid-February 2025[16] - The firm emphasizes the importance of non-GAAP financial measures for evaluating core operating results and comparing with industry peers[29] - Management emphasized the importance of these non-GAAP measures for understanding the firm's core operating results and improving comparability across periods[36]