T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Q3 2024 Earnings Presentation
17 slides from T. Rowe Price's earnings presentation, Nov 1, 2024
Slide 1: Q3 2024 Earnings Release Supplement
Q3 2024 Earnings Release Supplement T. Rowe Price Group, Inc. November 1, 2024 A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of September 30, 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: Financial Highlights
Financial Highlights Key Metric Q3 2023 Q2 2024 Q3 2024 AUM and Flows Net Flows ($17.4B) ($3.7B) ($12.2B) Assets Under Management (AUM)1 $1.35T $1.57T $1.63T Average AUM $1.39T $1.53T $1.59T Investment Advisory Annualized Effective Fee Rate 41.7bps 41.6bps 40.9bps Investment Advisory Annualized Effe
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 Ending AUM
Assets Under Management U.S. $ billions $1,688 $1,631 $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 September 2024 Market Change +92.3 +60.4 -6.6 +70.1 +127.6 +50.7 +14.7 +50.5 +166.
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 September 30, 2024 Assets Under Management Assets Under Management Assets Under Management ▪ Retirement assets are 67% of AUM $50 $52 $141 $48 $135 ▪ U.S. defined contribution AUM of
Slide 7: Quarterly Net Revenues
Quarterly Net Revenues U.S. $ millions Q3 2024 compared to Q3 2023 ▪ Investment advisory $114.9 / 6.9% fees represent more $169.0 $7.4 $1,785.6 than 90% of net $1,670.7 ($56.8) ($4.7) revenue in the periods presented ▪ Q3 2024 investment advisory revenue was Q3 2023 Investment CABI CABI Admin & Q3 2
Slide 8: Quarterly Adjusted Operating Expenses
Quarterly Adjusted Operating Expenses U.S. $ millions Q3 2024 compared to Q3 2023 Basis for Operating $37.7 / 3.6% Expense Guidance $18.1 $1,099.0 $1,061.3 $15.9 $16.7 $1.9 $4.3 U.S. $ millions ($18.9) ($0.3) Nine months ended 9/30/2024 9/30/2023 Change (%) Adjusted Operating $3,276.2 $3,110.0 5.3%
Slide 9: Quarterly Operating Income and Net Income
Quarterly Operating Income and Net Income U.S. $ millions, (except EPS) Operating Income Net Income U.S. Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 U.S. Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 GAAP GAAP Operating Income $581.3 $387.2 $586.6 $564.7 $613.6 Net Income $453.2 $437.6 $573.8 $483.4 $603.0 Op
Slide 10: Capital Management
Capital Management U.S. $ millions Capital Returned to Stockholders Cash and Investments1 Data through 9/30/2024 Q3 2023 Q4 2023 Q3 2024 $5,312 — Cash and Cash Equivalents $2,578.7 $2,066.6 $3,173.5 Share 1,983 Repurchases Discretionary Investments 486.3 463.7 471.8 Cash and Discretionary Investment
Slide 11: 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 9/30/2024, $19B of CABI $4.6 alternative fee-basis assets under management are eligible $35.1 to earn carried interest. $49
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 13: Non-GAAP Net Revenues and Operating Income Reconciliation
Non-GAAP Net Revenues and Operating Income Reconciliation U.S. $ millions Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Revenues, GAAP Basis $1,670.7 $1,642.0 $1,750.2 $1,733.3 $1,785.6 Non-GAAP Adjustments1: Consolidated Investment Products 0.7 0.5 1.2 0.5 1.3 Investment Amortization and Impairments
Slide 14: Appendix
Appendix
Slide 15: Subadvisory Variable Annuity (VA) Business
Subadvisory Variable Annuity (VA) Business U.S. $ billions Firm-Wide AUM Subadvised VA ▪ VA portion of total AUM Other has dropped from 9% in $2,000 $1,688 $1,631 2019 to more than 6% in $1,500 $1,471 $133 $1,445 $104 2024. $1,207 $121 $1,275 $103 $108 $95 $1,000 $1,350 $1,555 $1,342 $1,526 ▪ Organi
Slide 16: Additional Information
Additional Information Figures may not total due to rounding. Investment performance overview (slide 4) 1 Source: © 2024 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 17: 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