T. Rowe Price Group's third-quarter net income rose by 18%, despite significant client withdrawals from stock funds and equity outflows, according to the company's President and Chief Executive Rob Sharps. The Baltimore-based fund manager reported earnings of $442.6 million, or $1.97 per share, a notable increase from last year's $375.2 million or $1.66 per share.
The company's earnings, adjusted for one-off items, exceeded FactSet's Wall Street estimate of $1.71 per share, reaching $2.17 per share. Revenue also saw a boost, rising by 5.2% to $1.67 billion, surpassing the analyst estimate of $1.65 billion.
Investment advisory fees, a key revenue stream for the company, increased 1.5% to reach $1.46 billion in the third quarter.
However, the firm experienced high net client outflows amounting to $17.4 billion during this period. Despite seeing positive flows into fixed income, multi-asset, and alternatives, these outflows led to a reduction in assets under management to $1.35 trillion.
This financial performance comes in the face of challenging market conditions marked by investor caution and a shift away from equities towards other asset classes.
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