Financial Results

Net Income Rises At SEI Investments

Editorial Staff 1 February 2024

Net Income Rises At SEI Investments

The US-headquartered group, operating in several regions of the world, serves private banks and wealth management among its other service lines.

SEI, the US group serving clients, including those in the wealth management space, yesterday reported an 8 per cent year-on-year rise in net income to $120.7 million in the fourth quarter of 2023.

Revenues rose 6 per cent to $484.9 million, SEI said in a statement.

For all of 2023, net income dipped 3 per cent from the 2022 result, standing at $462.3 million.

"Despite variable market conditions throughout the year, we navigated through uncertainty and delivered solid growth and core profitability. Our 2023 results reflect strong sales activity – particularly in our technology, investment processing, and operations segments – demonstrating traction in growth segments where we believe SEI has significant opportunity," CEO Ryan Hicke, said.

Within SEI’s private banking segment, the firm’s fourth-quarter operating margin widened sharply to 10 per cent in 2023 from 2022. Operating profit rose to $123.8 million from $1.7 million. Within the investment advisors' side, operating profit dipped 1 per cent in 2023 to $42.6 million. On the institutional investors' side, operating profit fell 10 per cent, year-on-year in 2023, to £30.7 million. With investment managers, SEI's operating profit rose 15 per cent in 2023 reaching $59.7 million. 

Average assets under management in equity and fixed income programs, excluding LSV [Asset Management], increased $5.0 billion, to $167.4 billion during the fourth-quarter 2023, compared with $162.4 billion during the fourth-quarter 2022. Average assets under administration rose $133.5 billion, or 17 per cent, to $923.4 billion during the fourth-quarter 2023, compared with $789.9 billion during the fourth-quarter 2022. The firm said revenues from information processing and software servicing fees rose from new client conversions and growth from existing SEI Wealth PlatformSM (SWP) clients.

SEI said net sales events in the private banks and investment managers segments during the fourth-quarter 2023 were $22.9 million. These are expected to generate net annualized recurring revenues of about $17.6 million when contract values are completely realized. 

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