T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Q4 2024 Earnings Presentation
23 slides from T. Rowe Price's earnings presentation, Feb 5, 2025
Slide 1: Q4 2024 Earnings Release Supplement
Q4 2024 Earnings Release Supplement T. Rowe Price Group, Inc. February 5, 2025 A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of December 31, 2024, unless otherwise noted. All figures are USD, unless otherwise noted.
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation, and other statements that T. Rowe Price may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to T. Rowe Price’s future financial or business performance, strategies, or expectati
Slide 3: Q4 and Full Year Financial Highlights
Q4 and Full Year Financial Highlights Key Metric Q4 2023 Q3 2024 Q4 2024 2023 2024 AUM, Flows, & Investment Advisory Effective Fee Rate (EFR) Net Flows ($28.3B) ($12.2B) ($19.3B) ($81.8B) ($43.2B) Assets Under Management (AUM)1 $1.45T $1.63T $1.61T $1.45T $1.61T Average AUM $1.37T $1.59T $1.64T $1.3
Slide 4: Investment Performance Overview
Investment Performance Overview % of Funds/ U.S. Funds Outperforming Morningstar U.S. Funds Outperforming Morningstar Passive Composites Outperforming Composites Median1,2 Peer Median1,3 Benchmarks4 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years Equit
Slide 5: Assets Under Management
Assets Under Management U.S. $ billions $1,688 $1,607 $1,471 $1,445 $1,275 $1,207 Ending AUM $991 $962 $811 $747 $763 $692 $577 $482 $489 $391 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Market Change +92.3 +60.4 -6.6 +70.1 +127.6 +50.7 +14.7 +50.5 +166.3 -42.0 +2
Slide 6: Assets Under Management and Net Flows
Assets Under Management and Net Flows U.S. $ billions Assets Under Management Asset Class Client Type Geography As of December 31, 2024 Assets Under Management Assets Under Management Assets Under Management ▪ Retirement assets are 67% of AUM1 $50 $52 $53 $141 $48 $135 $142 ▪ U.S. defined contributi
Slide 7: Annual Net Flows
Annual Net Flows In billions Asset Class Geography 40 20 APAC, Alts EMEA, 0 Canada Multi-Asset U.S. Fixed Income -20 Equity -40 -60 -80 -100 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Equity $ — $ (44.6) $ (72.7) $ (85.4) $ (52.0) U.S. $ (13.9) $ (27.7) $ (49.7) $ (67.0) $ (44.4) FI 14.1 1.2
Slide 8: Quarterly Net Revenues
Quarterly Net Revenues U.S. $ millions Q4 2024 compared to Q4 2023 ▪ Investment advisory fees $182.5 / 11.1% represent about 90% of $231.3 $2.6 $1,824.5 net revenue in the $1,642.0 ($6.0) ($38.6) ($6.8) periods presented ▪ Q4 2024 investment advisory revenue was Q4 2023 Investment Performance- CABI
Slide 9: Quarterly Adjusted Operating Expenses
Quarterly Adjusted Operating Expenses U.S. $ millions Q4 2024 compared to Q4 2023 $71.9 / 6.2% $6.4 $0.1 $1,222.6 $56.0 $17.2 $5.8 $1,150.7 ($2.3) ($11.3) Q4 2023 Compensation & CABI Distribution & Advertising & Product & Tech, Occ, & General & Admin Q4 2024 Related Compensation Servicing Promotion
Slide 10: Annual Net Revenues and Adjusted Operating Expenses
Annual Net Revenues and Adjusted Operating Expenses U.S. $ millions Net Revenues $633.1 / 9.8% Basis for Operating Expense 26.8 21.1 422.4 10.3 230.7 37.1 $7,093.6 Guidance (89.1) (26.2) $6,460.5 U.S. $ millions Year ended $690.2 12/31/2024 12/31/2023 Change (%) Adjusted Operating $ 4,498.8 $ 4,260.
Slide 11: Quarterly Operating Income and Net Income
Quarterly Operating Income and Net Income U.S. $ millions, (except EPS) Operating Income Net Income U.S. Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 U.S. Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 GAAP GAAP Operating Income $387.2 $586.6 $564.7 $613.6 $568.4 Net Income $437.6 $573.8 $483.4 $603.0 $439.9 Op
Slide 12: Annual Operating Income and Net Income
Annual Operating Income and Net Income U.S. $ millions, (except EPS) Operating Income Net Income U.S. 2020 2021 2022 2023 2024 U.S. 2020 2021 2022 2023 2024 GAAP GAAP Operating Income $2,745.7 $3,710.0 $2,373.7 $1,986.2 $2,333.3 Net Income $2,372.7 $3,082.9 $1,557.9 $1,788.7 $2,100.1 Operating Dilut
Slide 13: Capital Management
Capital Management U.S. $ millions Capital Returned to Stockholders Cash and Investments1 Data through 12/31/2024 Q4 2023 Q3 2024 Q4 2024 $4,810 Cash and Cash Equivalents $2,066.6 $3,173.5 $2,649.8 — Share Repurchases 1,444 Discretionary Investments $463.7 $471.8 $457.1 Cash and Discretionary Invest
Slide 14: Quarterly Capital Allocation-Based Income (carried interest)
Quarterly Capital Allocation-Based Income (carried interest) U.S. $ millions, unless otherwise noted Investments in affiliated private investment funds—carried interest ▪ As of 12/31/2024, $19B of alternative fee-basis assets CABI ($5.2) under management are eligible $12.5 to earn carried interest $
Slide 15: Annual Capital Allocation-Based Income (carried interest)
Annual Capital Allocation-Based Income (carried interest) ▪ Absolute performance of the U.S. $ millions, unless otherwise noted following indices are an Investments in affiliated private investment funds—carried interest indicator of changes in CABI $46.6 accrued carried interest $134.1 $519.9 $(87.
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 17: Non-GAAP Net Revenues and Operating Income Reconciliation
Non-GAAP Net Revenues and Operating Income Reconciliation U.S. $ millions Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2020 2021 2022 2023 2024 Net Revenues, GAAP Basis $1,642.0 $1,750.2 $1,733.3 $1,785.6 $1,824.5 $6,206.7 $7,671.9 $6,488.4 $6,460.5 $7,093.6 Non-GAAP Adjustments1: Consolidated Investment
Slide 18: Appendix
Appendix
Slide 19: Assets Under Management – by Account Type
Assets Under Management – by Account Type U.S. $ billions 2022 2023 2024 Full-service recordkeeping and plan administration U.S. Defined Contribution – services provided to: $410.2 $486.2 $565.2 Investment only U.S. Retirement Plan Sponsors - ▪ $282 billion in assets 132.4 141.2 154.2 under administ
Slide 20: Alternatives - Fee-basis AUM and Unfunded Commitments
Alternatives - Fee-basis AUM and Unfunded Commitments U.S. $ billions Private Fee-Basis AUM CLOs Liquid Total Markets At December 31, 2023 $ 18.5 $ 18.0 $ 11.4 $ 47.9 Unfunded Commitments Total Net capital deployments 3.7 2.4 0.3 6.4 At December 31, 2023 $ 11.6 New capital raised 9.9 Manager-driven
Slide 21: ETFs and Assets under Advisement (AUA)
ETFs and Assets under Advisement (AUA) In billions ETF AUM and Flows Assets Under Advisement Managed Accounts – Flows model delivery 16.4 $4.7 $8.0 Multi-Asset Solutions AUM 11.6 8.2 8.0 $1.4 $2.5 $0.4 $0.4 2.8 $0.1 $0.8 $0.6 $0.2 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 ETF AUM and flows d
Slide 22: Additional Information
Additional Information Figures may not total due to rounding. Investment performance overview (slide 4) 1 Source: © 2025 Morningstar, Inc. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3)
Slide 23: Important Information
Important Information Referenced in the earnings call: Pacific Life provides a variety of products and services designed to help individuals and businesses in the retail, institutional, workforce benefits, and reinsurance markets achieve financial security. All guarantees are subject to the claims-p