Fri, Jul 26, 4:13 PM (43 days ago)
SEI Investments Company’s financial report for the quarter ended June 30, 2024, reveals a positive financial performance with key highlights: 1. **Revenue Growth**: Total revenues increased by 6% to $518.9 million for the quarter and by 8% to $1.03 billion for the six months ended June 30, 2024. This growth was driven by higher assets under administration and market appreciation. 2. **Expense Management**: Operating expenses rose by 2% to $382.5 million for the quarter, primarily due to increased personnel costs and inflation impacts. However, cost containment measures helped mitigate the increase. 3. **Profitability**: Income from operations surged by 21% to $136.5 million for the quarter, and net income increased by 17% to $139.1 million. The diluted earnings per share also saw an 18% increase to $1.05. 4. **Segment Performance**: - **Private Banks**: Revenues remained flat, but operating profit increased by 12% due to higher investment processing fees and cost reductions. - **Investment Advisors**: Revenues grew by 10%, driven by higher fees from separately managed accounts and new cash management programs. - **Institutional Investors**: Revenues decreased by 5%, but operating profit increased by 12% due to lower direct expenses. - **Investment Managers**: Revenues increased by 13%, with a 22% rise in operating profit due to new services and positive cash flows. - **Investments in New Businesses**: Revenues increased by 15%, with a focus on hosted technology and private wealth management services. 5. **Cash Flow and Liquidity**: Operating cash flow improved by $44.6 million, and the company repurchased 2.456 million shares for $167.2 million. SEI maintains a strong liquidity position with $768.6 million in cash and equivalents. 6. **Future Outlook**: The company’s effective tax rate was stable, and it anticipates continued growth driven by market conditions and strategic investments in technology and services.