SEI Investments Reports 13% Revenue Growth, 34% Net Income Increase in Q3 2024

SEI Investments Company reported significant financial growth in its third quarter and the first nine months of 2024, reflecting a robust performance across its business segments. For the three months ended September 30, 2024, total revenues reached $537.4 million, a 13% increase from $476.8 million in the same period of 2023. For the nine months, revenues totaled $1.57 billion, up 9% from $1.43 billion year-over-year. This growth was driven by increased investment processing and management fees, particularly in the Private Banks and Investment Advisors segments.

Net income for the third quarter was $154.9 million, a 34% rise from $115.7 million in the prior year, while net income for the nine months increased to $425.4 million from $341.5 million. Basic earnings per share for the third quarter improved to $1.20 from $0.87, and for the nine months, it rose to $3.26 from $2.57. The company’s operating income also saw substantial growth, with a 33% increase in Q3 to $143.8 million and a 26% increase for the nine months to $406.2 million.

The Private Banks segment reported revenues of $138.7 million for Q3 2024, a 16% increase from $119.7 million in Q3 2023, driven by higher investment processing fees. The Investment Advisors segment also performed well, with revenues of $126.8 million, up 15% from $110.5 million, attributed to increased fees from separately managed accounts and new revenue from the SEI Integrated Cash Program.

Total current assets as of September 30, 2024, were $1.66 billion, up from $1.48 billion at the end of 2023. Cash and cash equivalents increased to $901.1 million from $834.7 million. Total liabilities decreased to $330.0 million from $388.2 million, contributing to an increase in total shareholders' equity to $2.35 billion from $2.13 billion.

Strategically, SEI completed the acquisition of XPS Pensions (Nexus) Limited in November 2023, which has contributed to its revenue growth. The company also reported a net pre-tax gain of $8.2 million from the sale of a condominium in New York during Q3 2024. Additionally, SEI has been proactive in managing its stock repurchase program, repurchasing 3.7 million shares for $253 million in the first nine months of 2024.

Overall, SEI Investments Company demonstrated strong financial performance and strategic growth initiatives, positioning itself favorably in the wealth management and investment services sectors.