T. Rowe Price Group, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $7.1 billion, a 9.8% increase from $6.5 billion in 2023. The company's net income also rose to $2.1 billion, up 17.4% from $1.8 billion the previous year. This growth was primarily driven by a 12.1% increase in investment advisory fees, which totaled $6.4 billion, reflecting a rise in average assets under management (AUM) to $1.6 trillion, an increase of $162.1 billion from the end of 2023.
The increase in AUM was attributed to market appreciation of $205.3 billion, despite net cash outflows of $43.2 billion. Notably, T. Rowe Price's target date retirement products saw net cash inflows of $16.3 billion, bringing their total AUM to $475.6 billion, which represented 29.6% of the firm's managed assets, up from 28.3% in 2023. The firm also reported a 3.2% increase in employee headcount, reaching 8,158 associates by the end of 2024.
Strategically, T. Rowe Price has focused on enhancing its capabilities and expanding its market presence. The firm is investing in technology and distribution channels to improve client engagement and service delivery. Additionally, T. Rowe Price has committed $360 million for future product launches through its subsidiary, Oak Hill Advisors, as part of its growth strategy. The company continues to face challenges from passive investment strategies and fee pressures, but it remains committed to active management and client service.
Looking ahead, T. Rowe Price anticipates continued growth in AUM and revenues, driven by strong investment performance and strategic initiatives. The firm expects its non-GAAP operating expenses to grow by 4% to 6% in 2025, reflecting ongoing investments in technology and talent. The company remains optimistic about its ability to navigate market conditions and regulatory changes while delivering value to its clients and shareholders.
About PRICE T ROWE GROUP INC
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