Latest news with #WealthSolutions
Yahoo
08-05-2025
- Business
- Yahoo
Voya Financial Inc (VOYA) Q1 2025 Earnings Call Highlights: Strong Growth and Strategic ...
Adjusted Operating Earnings Per Share: $2.00, a 13% increase over the prior year. Cash Generation: Approximately $200 million, above the 90% target. Wealth Solutions Adjusted Operating Earnings: $207 million, 11% growth year-over-year. Defined Contributions Organic Net Flows: Approximately $30 billion. Assets Added from OneAmerica Acquisition: $60 billion. Investment Management Net Cash Flows: $7.7 billion, representing 2.5% organic growth. Health Solutions Adjusted Operating Earnings: $46 million. Excess Capital: Approximately $150 million. RBC Ratio: 385%. Debt Repayment: Approximately $400 million repaid in February. Release Date: May 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Voya Financial Inc (NYSE:VOYA) reported a 13% increase in adjusted operating earnings per share, reaching $2.00 in the first quarter. The company achieved strong commercial results in Wealth Solutions and Investment Management, with $30 billion in defined contributions organic net flows and $7.7 billion in net cash flows, respectively. Voya Financial Inc (NYSE:VOYA) successfully integrated $60 billion in assets from the OneAmerica acquisition, maintaining a 90% retention rate. The company improved margins in Health Solutions, with positive developments in Stop Loss and a favorable reserve experience. Voya Financial Inc (NYSE:VOYA) maintained a strong balance sheet with excess capital of approximately $150 million and a RBC ratio of 385%. Negative Points Alternative income was $0.15 below long-term expectations, with an annualized return of approximately 5%, and is expected to remain below expectations in the second quarter. Economic signals have been mixed, and market volatility remains elevated, leading the company to proceed with caution. GAAP net income was below cash generation due to non-cash items emerging in the quarter. The company anticipates that equity markets will affect second-quarter AUM balances and revenues. Voya Financial Inc (NYSE:VOYA) increased reserves in the Voluntary segment due to economic uncertainty, which may impact utilization. Q & A Highlights Q: Can you provide more color on Wealth earnings and whether the current margin is a reasonable run rate going forward? A: Mike Katz, CFO, explained that the spread-based assets were slightly higher than expected, which contributed to the current margin. However, these assets are expected to moderate. The outlook for Wealth will also be influenced by macroeconomic factors and some expense seasonality. OneAmerica's acquisition plays a role, and targeted investments are being made, which may affect expenses slightly.
Business Wire
06-05-2025
- Business
- Business Wire
Voya Financial announces first-quarter 2025 results
NEW YORK--(BUSINESS WIRE)--Voya Financial, Inc. (NYSE: VOYA) announced today its first-quarter 2025 financial results: First-quarter 2025 net income available to common shareholders of $139 million, or $1.42 per diluted share, and after-tax adjusted operating earnings 1 of $195 million, or $2.00 per diluted share. Results are driven by positive prior year Stop Loss reserve developments, the successful acquisition of OneAmerica Financial's full-service retirement plan business, disciplined spend, and strong commercial momentum. The balance sheet is prudently positioned, and excess capital generation continues to be strong. In the quarter we: returned $43 million to shareholders through common dividends. deployed approximately $200 million for the acquisition of OneAmerica Financial's full-service retirement plan business and strategic growth investments. 'In the first quarter of 2025, adjusted operating EPS grew 13% compared with the prior-year period, driven primarily by the positive impact of the OneAmerica acquisition and our strong commercial momentum in Wealth Solutions and Investment Management,' said Heather Lavallee, chief executive officer, Voya Financial. 'I am encouraged by the commercial momentum we are building across our businesses, fueled by strong inflows, key strategic renewals, and a robust pipeline of opportunities.' 'Despite the uncertainties in the current macroeconomic environment, our commitment to creating long-term value for our shareholders remains steadfast. We are focused on executing on our key priorities while maintaining a strong balance sheet as we balance capital return to shareholders with prudent investment in growth opportunities.' First-Quarter 2025 Consolidated Results First-quarter 2025 net income available to common shareholders was $139 million, or $1.42 per diluted share, compared with $234 million, or $2.24 per diluted share, in first-quarter 2024. The decrease was driven by the absence of net investment gains and tax benefits associated with divested businesses in the prior period which did not repeat and higher expenses in the current period associated with acquisitions and severance, partially offset by higher after-tax adjusted operating earnings. First-quarter 2025 after-tax adjusted operating earnings were $195 million, or $2.00 per diluted share, compared with $185 million, or $1.77 per diluted share, in first-quarter 2024. The growth was primarily due to the acquired business from OneAmerica, positive capital markets and net inflows across the business, partially offset by higher expenses in Health Solutions due to strategic investments in Short-Term Disability and Leave Management. First-quarter 2025 earnings per share also reflect a reduced share count as a result of share repurchases in the prior year. Business Segment Results Wealth Solutions Wealth Solutions first-quarter 2025 pre-tax adjusted operating earnings were $207 million, up from $186 million in the prior-year period. The increase was primarily due to the acquired business from OneAmerica, positive capital markets and disciplined spend. Net revenues for the trailing twelve months (TTM) ended Mar. 31, 2025 grew 10.2% compared with the prior-year period due to positive capital markets, acquired spread and fee-based revenues from OneAmerica and higher alternative investment income. Adjusted operating margin for the TTM ended Mar. 31, 2025 was 39.7% compared with 35.7% in the prior-year period. The improvement reflects net revenue growth and disciplined spend management. Excluding notable items, for the TTM ended Mar. 31, 2025, net revenues grew 7.9% and adjusted operating margin was 41.2%. Total client assets as of Mar. 31, 2025 were $694 billion, up 21% compared with Mar. 31, 2024, primarily due to assets onboarded from OneAmerica, positive capital markets, and significant recordkeeping wins. Those wins contributed to approximately $30 billion of defined contribution net inflows in first quarter 2025. Health Solutions Health Solutions first-quarter 2025 pre-tax adjusted operating earnings were $46 million, down from $59 million in the prior-year period. The positive prior year Stop Loss reserve developments were tempered by lower reported Group Life and Voluntary underwriting gains and strategic investments in Short-Term Disability and Leave Management. Net revenues for the TTM ended Mar. 31, 2025 declined 17.1% compared with the prior-year period. Adjusted operating margin for the TTM ended Mar. 31, 2025, was 2.7% compared with 23.9% in the prior-year period. Excluding notable items, for the TTM ended Mar. 31, 2025, net revenues declined 18.0% and adjusted operating margin was 3.6%. The decline in margins and net revenues primarily reflects a higher loss ratio in Stop Loss in the current TTM period. Health Solutions first-quarter 2025 annualized in-force premiums and fees declined 5% to $3.7 billion compared with the prior-year period. The decline primarily reflects actions to improve profitability in the Stop Loss business, partially offset by growth in the Voluntary business. Investment Management Investment Management first-quarter 2025 pre-tax adjusted operating earnings, excluding noncontrolling interest, were $41 million, compared to $42 million in the prior-year period. Growth in fee-based revenues benefiting from strong business momentum and positive capital markets year-over-year was offset by higher seasonal expenses. Net revenues for the TTM ended Mar. 31, 2025 grew 7.6% compared with the prior-year period due to an increase in fee-based revenues reflecting net inflows and positive capital markets. Adjusted operating margin for the TTM ended Mar. 31, 2025 was 28.1% compared with 25.7% in the prior-year period. The improvement was due to net revenue growth and disciplined expense management. Excluding notable items, for the TTM ended Mar. 31, 2025, net revenues grew 8.0% and adjusted operating margin was 28.6%. Investment Management generated net inflows of $7.7 billion (excluding divested businesses) during the three months ended Mar. 31, 2025, representing organic growth of 2.5% for the quarter. The growth reflects continued momentum in the Institutional, Insurance, and Intermediary channels. Corporate Corporate first-quarter 2025 pre-tax adjusted operating losses, excluding noncontrolling interest, were $62 million, compared with $63 million of losses in the prior-year period. Capital For the first-quarter 2025, the company generated approximately $200 million of excess capital reflecting capital generation of over 90% of after-tax adjusted operating earnings for the quarter. In the first quarter, the company returned $43 million of excess capital to shareholders through common stock dividends and retired $400 million of 3.976% Senior Notes using the proceeds from the recent debt issuance. Additionally, the company deployed approximately $200 million of excess capital to the OneAmerica Financial's full-service retirement plan business acquisition upfront cash payment and risk-based capital requirements as well as towards the company's strategic growth investments. As of Mar. 31, 2025, the company had approximately $150 million of excess capital. Additional Financial Information and Earnings Call More detailed financial information can be found in the company's quarterly investor supplement, which is available on Voya's investor relations website, In addition, Voya will host a conference call on Wednesday, May 7, 2025, at 10 a.m. ET, to discuss the company's first-quarter 2025 results. The call and slide presentation can be accessed via the company's investor relations website at A replay of the call will be available on the company's investor relations website, starting at approximately 1 p.m. ET on May 7, 2025. About Voya Financial Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth and investment company with approximately 10,000 employees who are focused on achieving Voya's aspirational vision: "Clearing your path to financial confidence and a more fulfilling life." Through products, solutions and technologies, Voya helps its approximately 15.7 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya's workplace benefits and savings offerings by engaging directly with approximately 11.9 million employees in the U.S. Certified as a 'Great Place to Work' by the Great Place to Work ® Institute, Voya is purpose-driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as one of the World's Most Ethical Companies ® by Ethisphere; a member of the Bloomberg Gender-Equality Index; and a 'Best Place to Work for Disability Inclusion' on the Disability Equality Index. For more information, visit Follow Voya Financial on Facebook, LinkedIn and Instagram. Use of Non-GAAP Financial Measures We believe that Adjusted operating earnings before income taxes is a meaningful measure used by management to evaluate our business and segment performance. This measure enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying core business segments. It excludes results from exited businesses and items that tend to be highly variable from period to period based on capital market conditions or other factors which distort the ability to make a meaningful evaluation of our segments. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure Income (loss) before income taxes. Adjusted operating earnings before income taxes does not replace Income (loss) before income taxes as the U.S. GAAP measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both measures when reviewing our financial and operating performance. Each segment's Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) before income taxes for the following items: Net investment gains (losses); Income (loss) related to businesses exited or to be exited through reinsurance or divestment; Income (loss) attributable to noncontrolling interests to which we are not economically entitled; Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings before income taxes that are available to common shareholders; Other adjustments may include the following items: Income (loss) related to early extinguishment of debt; Impairment of goodwill and intangible assets; Amortization of acquisition-related intangible assets as well as contingent consideration fair value adjustments; Expected return on plan assets net of interest costs associated with our qualified defined benefit pension plan and immediate recognition of net actuarial gains (losses) related to all of our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments; and Other items not indicative of normal operations or performance of our segments or that may be related to events such as capital or organizational restructurings, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate. Sources of Earnings We analyze our segment performance based on the sources of earnings. We believe that this supplemental information is useful because we use it to analyze our business and it can help investors understand the main drivers of Adjusted operating earnings before income taxes. The sources of earnings include: Investment spread and other investment income. Fee-based margin. Net underwriting gain (loss). Administrative expenses. Premium taxes, fees and assessments. Net commissions. DAC/VOBA and other intangibles amortization. Net Revenue and Adjusted Operating Margin Adjusted operating margin is defined as Adjusted operating earnings before income taxes divided by net revenue. Net revenue is the sum of investment spread and other investment income, fee-based margin, and net underwriting gain (loss). We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations. We report net revenue and adjusted operating margin excluding notable items since they provide the main drivers for Adjusted operating earnings before income taxes excluding the effects of items that are not expected to recur at the same level. Forward-Looking and Other Cautionary Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'plan,' and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) global market risks, including general economic conditions, interest rates, inflation, tariffs imposed or threatened by the U.S. or foreign governments and our ability to manage such risks; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and availability of funds through dividends from our subsidiaries or lending programs; (iii) strategic and business risks, including our ability to maintain market share, achieve desired results from our acquisitions and dispositions, or otherwise manage our third-party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; and (vi) tax, regulatory and legal risks, including limits on our ability to use deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations ('MD&A') – Trends and Uncertainties' in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, as filed with the SEC on Feb. 21, 2025, and in our Quarterly Report on Form 10-Q for the three months ended Mar. 31, 2025, to be filed with the SEC on or before May 12, 2025. VOYA-IR VOYA-CF Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) Three Months Ended (in millions USD, except per share) 3/31/2025 3/31/2024 After-tax (1) Per share After-tax (1) Per share Net Income (loss) available to Voya Financial, Inc.'s common shareholders $ 139 $ 1.42 $ 234 $ 2.24 Less: Net investment gains (losses) (1 ) (0.02 ) 50 0.48 Income (loss) related to businesses exited or to be exited through reinsurance or divestment (2) (31 ) (0.32 ) 13 0.12 Other adjustments (3) (24 ) (0.24 ) (14 ) (0.13 ) Adjusted operating earnings $ 195 $ 2.00 $ 185 $ 1.77 Less: Alternative investment income and prepayment fees above (below) expectations net of variable compensation (15 ) (0.15 ) (12 ) (0.11 ) Adjusted operating earnings excluding notable items $ 210 $ 2.15 $ 197 $ 1.88 Expand Note: Totals may not sum due to rounding. (1) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. For net investment gains (losses), income (loss) related to businesses exited, and other non-operating items, we apply a 21% tax rate and adjust for related tax benefits and expenses, including changes to tax valuation allowances and impacts related to changes in tax law. (2) Includes a tax benefit of $38 million related to a divested business for the three months ended Mar. 31, 2024. (3) Primarily consists of acquisition and integration costs associated with recent transactions and amortization of acquisition-related intangible assets. For the three months ended Mar. 31, 2025, also includes $6 million, after-tax, of severance costs. Expand Adjusted Operating Earnings and Notable Items Three Months Ended Mar. 31, 2025 (in millions USD, except per share) Amounts Including Notable Items Alternative investment income and prepayment fees above (below) expectations (1) Amounts Excluding Notable Items a b c = a - b Adjusted operating earnings Wealth Solutions $ 207 $ (14 ) $ 222 Health Solutions 46 (2 ) 48 Investment Management 41 (2 ) 43 Corporate (62 ) — (62 ) Adjusted operating earnings before income taxes 232 (19 ) 251 Less: Income taxes (2) 37 (4 ) 41 Adjusted operating earnings after income taxes $ 195 $ (15 ) $ 210 Adjusted operating earnings per share 2.00 (0.15 ) 2.15 Expand Note: Totals may not sum due to rounding. (1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our expectations, net of variable compensation. The long-term expectation for alternative investments is a 9% annual return, which for the three months ended Mar. 31, 2025, was approximately $49 million, pre-tax and before variable compensation. The expectation for prepayment fees is between $1 million and $2 million for the three months ended Mar. 31, 2025, pre-tax and before variable compensation, as communicated in Feb. 2025. (2) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. Expand Adjusted Operating Earnings and Notable Items Three Months Ended Mar. 31, 2024 a b c = a - b Adjusted operating earnings Wealth Solutions $ 186 $ (14 ) $ 200 Health Solutions 59 — 60 Investment Management 42 (1 ) 42 Corporate (63 ) — (63 ) Adjusted operating earnings before income taxes 224 (15 ) 238 Less: Income taxes (2) 38 (3 ) 42 Adjusted operating earnings after income taxes $ 185 $ (12 ) $ 197 Adjusted operating earnings per share 1.77 (0.11 ) 1.88 Expand Note: Totals may not sum due to rounding. (1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than expectations, net of variable compensation. The long-term expectation for alternative investments is a 9% annual return, which for the three months ended Mar. 31, 2024, was approximately $46 million, pre-tax and before variable compensation. The prior long-term expectation for prepayment fees was a 10 basis point annual contribution to yield, which for the three months ended Mar. 31, 2024, was approximately $8 million, pre-tax and before variable compensation. (2) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. Expand Net Revenue, Adjusted Operating Margin, and Notable Items Twelve Months Ended Mar. 31, 2025 (in millions USD) Amounts Including Notable Items Alternative investment income and prepayment fees above (below) expectations (1) Amounts Excluding Notable Items a b c = a - b Net revenue Wealth Solutions $ 2,119 $ (53 ) $ 2,173 Health Solutions 972 (9 ) 981 Investment Management 991 (11 ) 1,001 Total net revenue $ 4,082 $ (73 ) $ 4,155 Adjusted operating margin Wealth Solutions 39.7 % (1.5 )% 41.2 % Health Solutions 2.7 % (0.9 )% 3.6 % Investment Management 28.1 % (0.5 )% 28.6 % Adjusted operating margin, excluding Corporate 28.1 % (1.2 )% 29.2 % Expand Note: Totals may not sum due to rounding. (1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for the twelve months ended Mar. 31, 2025, was approximately $192 million, pre-tax and before variable compensation. The expectation for prepayment fees was approximately $29 million for the twelve months ended Mar. 31, 2025, pre-tax and before variable compensation. This reflects the updated expectation for periods after 2024 of approximately $1 million to $2 million per quarter as disclosed in Feb. 2025 and the prior long-term expectation for periods through 2024 of approximately $8 million to $10 million per quarter with both expectations pre-tax and before variable compensation. Expand Net Revenue, Adjusted Operating Margin, and Notable Items Twelve Months Ended Mar. 31, 2024 a b c d = a - b - c Net revenue Wealth Solutions $ 1,922 $ (91 ) $ — $ 2,013 Health Solutions 1,172 (8 ) (16 ) 1,196 Investment Management 921 (5 ) — 927 Total net revenue $ 4,015 $ (104 ) $ (16 ) $ 4,136 Adjusted operating margin Wealth Solutions 35.7 % (2.9 )% — % 38.6 % Health Solutions 23.9 % (0.5 )% (1.0 )% 25.4 % Investment Management 25.7 % (0.4 )% — 26.1 % Adjusted operating margin, excluding Corporate 29.9 % (1.8 )% (0.3 )% 32.0 % Expand Note: Totals may not sum due to rounding. (1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our expectations, net of variable compensation. The long-term expectation for alternative investments is a 9% annual return, which for the twelve months ended Mar. 31, 2024, was approximately $192 million, pre-tax and before variable compensation. The prior long-term expectation for prepayment fees was a 10 basis point annual contribution to yield, which for the twelve months ended Mar. 31, 2024, was approximately $37 million, pre-tax and before variable compensation. (2) Includes changes in certain legal and other reserves not expected to recur at the same level. Expand
Business Mayor
02-05-2025
- Business
- Business Mayor
Standard Chartered beats first-quarter profit expectations on strong growth in wealth management
Standard Chartered Plc bank branch in Hong Kong Bloomberg | Bloomberg | Getty Images Standard Chartered on Friday beat first-quarter profit expectations on the back of strong growth in its wealth management, global markets, and global banking businesses. The bank's reported profit before taxation for the three months ended in March was $2.103 billion, up from $1.91 billion in the same period a year ago. Here are Standard Chartered's first-quarter 2025 results compared with consensus estimates compiled by the bank. Profit before tax: $2.103 billion vs. $1.905 billion Underlying net interest income (NII): $2.796 billion vs. $2.796 billion 'We delivered a strong performance in the first quarter of 2025, with earnings per share up 19%, driven by double-digit income growth in Wealth Solutions, Global Markets and Global Banking,' Group Chief Executive Bill Winters said in a statement. The bank's Wealth Solutions division was a standout performer during the quarter, posting a 28% increase year-on-year in operating income. Standard Chartered's Global Markets business posted a 14% increase in operating income during the quarter, powered by strong growth in credit trading. The Global Banking division experienced a 17% increase in operating income. The bank, however, booked a $219 million credit impairment charge in Q1, up 24% year-on-year, with the bulk stemming from its Wealth and Retail Banking division, where rising rates have begun to strain repayments in certain unsecured portfolios. 'Going forward, we can probably expect interest rates to come down, reducing such borrowers' stress,' according to Michael Makdad, a senior equity analyst at Morningstar. The earnings do not fully capture the impact of Trump's tariffs, as the 'reciprocal' tariffs announced in April were put on hold. However, levies on steel, aluminum and autos have been in effect since March. Winters said that while the imposition of trade tariffs has increased global economic and geopolitical complexity, he was confident that the bank would continue to improve returns. 'Our presence in structurally high-growth markets across Asia, Africa and the Middle East is key to driving long-term sustainable value for our shareholders, and we remain focused on reinforcing these competitive advantages to drive future growth,' Winters said. The bank also maintained its guidance for 2025 and 2026, projecting operating income to grow at a compound annual rate of 5–7% between 2023 and 2026, excluding the impact of the deposit insurance reclassification. The set of earnings comes after Standard Chartered reported in February that annual profits in 2024 surged 18% on the back of record growth in its wealth unit and robust results from its markets division. The London-headquartered lender had called for a $1.5 billion share buyback after the full-year results were reported. The bank is also currently undertaking a cost-saving initiative called 'Fit for Growth,' which it rolled out in 2024. It aims to save roughly $1.5 billion over three years. Just a few days earlier, Asia-focused rival bank HSBC announced a share buyback of up to $3 billion, which it aimed to complete before its 2025 interim results.
Yahoo
15-04-2025
- Business
- Yahoo
Standard Chartered launches sports investment fund for affluent clients
Standard Chartered has introduced an alternative fund focused on sports, specifically designed for ultra-high-net-worth (UHNW) and high-net-worth (HNW) clients within its Global Private Bank. The fund will be managed by a 'leading' global alternative investment manager, stated the British lender. It will focus on opportunities within the sports, media, and entertainment sectors, capitalising on the rising interest in sports investments. The sports investment sector has gained traction as major leagues and teams increasingly looking for alternative capital financing options. This trend has been further accelerated by recent major sports-related transactions involving leading family offices, positioning sports investing as a viable alternative asset class for UHNW individuals aiming to enhance and diversify their investment portfolios. Over the past decade, the media industry has experienced an increase in media contract values, with growth rates of 16% to 17%. Major sports leagues globally have secured 'record-breaking' broadcasting deals, contributing to a revenue-generating model that has attracted the attention of private investors, highlighted the bank. Standard Chartered stated that it is among the first banks to introduce such a fund across its operational footprint. Standard Chartered Advisory and Managed Investments, Wealth Solutions global head Sumeet Bhambri said: 'Our open architecture wealth platform allows us to curate and onboard unique opportunities to meet our clients' needs. 'As clients increasingly look to incorporate alternatives into their portfolios to achieve greater diversity and long-term growth, the new fund offers a professionally managed solution for our clients to access high-quality private market opportunities with institutional grade risk-management and oversight Earlier this year, Standard Chartered launched a European private credit strategy fund in response to strong demand for European private credit. Last month, it launched the Private Markets Co-Investment Club, in collaboration with Ardian, to offer wealthy clients direct access to private market co-investment opportunities. The same month, Standard Chartered also launched SC GPT, a generative AI platform designed to boost productivity and personalise client experiences. "Standard Chartered launches sports investment fund for affluent clients" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
22-02-2025
- Business
- Yahoo
Standard Chartered PLC (SCBFF) Full Year 2024 Earnings Call Highlights: Record Income and ...
Return on Tangible Equity (RoTE): 11.7%, up 160 basis points year-on-year. Record Income: $19.7 billion in 2024. Net Interest Income (NII): $10.4 billion, up 10%. Non-NII: Up 20%, driven by Wealth Solutions and Global Markets. Operating Expenses: Up 7% for the year. Credit Impairment: $557 million, up 5%. Profit Before Tax: Up 21%. Full Year Dividend Per Share: Increased by 37%. Share Buyback: New $1.5 billion announced. Capital Distributions: Total $4.9 billion since full year 2023 results. Loan Loss Rate: 19 basis points in 2024. Underlying Loans and Advances Growth: 4% for the year. Customer Deposits: Up 1% in 2024. CET1 Ratio: 14.2% in 2024. Wealth Solutions Income: Up 36%. Affluent Net New Money: $44 billion in 2024. Sustainable Finance Income: $982 million, up 36% year-on-year. Warning! GuruFocus has detected 4 Warning Sign with SCBFF. Release Date: February 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Standard Chartered PLC (SCBFF) achieved a return on tangible equity of 11.7% in 2024, up 160 basis points year-on-year. The company reported record income of $19.7 billion, with strong performances in Wealth Solutions and double-digit growth in Global Markets and Banking. A 37% increase in full-year dividend per share was announced, along with a new $1.5 billion share buyback. The Fit for Growth program is progressing well, achieving $200 million in annualized savings from executed projects in 2024. The company is on track to meet its target of at least $8 billion in shareholder distributions by 2026. Operating expenses increased by 7% in 2024, with credit impairment rising by 5% to $557 million. A $561 million write-off of software assets was recorded, impacting the company's financials. Restructuring charges amounted to $441 million, primarily due to organizational transformation actions. The loan loss rate is expected to normalize towards 30 to 35 basis points, up from 19 basis points in 2024. There is a headwind of around 1% to NII in 2025 from the WRB transformation actions announced in Q3. Q: Can you elaborate on the expected revenue growth for 2025, given the strong performance in Q4 2024? A: William Winters, Group CEO, noted that while the company expects to be at the higher end of the 5% to 7% CAGR target for 2023 to 2026, they are not changing their guidance. The strong momentum from Q4 2024 has carried into 2025, and the company is pushing for every bit of upside. However, they remain cautious due to external factors, although they are optimistic about the franchise's position and the supportive environment. Q: What is the outlook for the bank's return on tangible equity (RoTE) beyond 2026? A: William Winters stated that while the bank is on track to achieve a RoTE approaching 13% by 2026, they do not see 13% as an endpoint. The bank believes it can drive RoTE substantially higher, depending on execution and external conditions. The focus remains on continuing to progress beyond 2026. Q: How is the bank managing the impact of software write-downs and restructuring charges? A: Diego De Giorgi, Group CFO, explained that the software write-downs related to the documentation of capitalization decisions are complete and have no impact on capital. The restructuring charges are largely cash expenses, with some additional costs expected from market exits and dual occupancy costs. The bank does not guide to a run rate for restructuring but expects some ongoing charges related to strategic actions. Q: Can you provide more details on the bank's strategy in Africa and its potential for growth? A: William Winters emphasized that Africa is a strong and differentiating market for Standard Chartered. Despite challenges like debt restructurings, the bank consistently generates returns above the cost of these events. The bank's presence in Africa is crucial for multinational clients, including Chinese companies, and supports the bank's broader network strategy. The focus is on leveraging the bank's unique position to capture growth opportunities in Africa. Q: What is the bank's approach to capital returns, and how does it align with the current CET1 ratio? A: William Winters stated that the bank is comfortable operating within its 13% to 14% CET1 target range and is prepared to drop to the lower end if appropriate. The bank has announced a $1.5 billion share buyback and aims to distribute at least $8 billion to shareholders between 2024 and 2026. The approach to capital returns is dynamic, considering factors like geopolitical uncertainty and the credit cycle. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
