Federated Hermes Inc

Latest Results (20.08.2024):

Record Assets Under Management

Federated Hermes Inc. reported record total assets under management (AUM) of $782.7 billion for the second quarter of 2024. This represents an increase of $78.7 billion or 11% from the same period last year and a slight increase of $4.0 billion or 1% from the previous quarter. The growth was primarily driven by increases in money market assets.

Money Market Assets Surge

Money market assets reached a record $586.6 billion in Q2 2024, up $77.6 billion or 15% from Q2 2023 and up $7.8 billion or 1% from Q1 2024. This significant growth underscores the strong demand for Federated Hermes' liquidity products, which offer attractive yields and excellent cash management services.

Non-Cash Intangible Asset Impairment

Federated Hermes' Q2 2024 results included a $66.3 million non-cash expense related to the impairment of an indefinite-lived intangible asset. This impairment charge, which equates to ($0.76) per diluted share, was associated with the 2018 acquisition of Federated Hermes Limited and was driven by changes in projected cash flows.

Dividend Declaration

The board of directors of Federated Hermes declared a dividend of $0.31 per share for Q2 2024. The dividend is payable on August 15, 2024, to shareholders of record as of August 8, 2024. This reflects the company's commitment to returning value to its shareholders.

Revenue and Earnings

For Q2 2024, Federated Hermes reported earnings per diluted share (EPS) of $0.20, compared to $0.81 for the same quarter last year. The net income for Q2 2024 was $21.0 million, down from $72.2 million in Q2 2023. Revenue decreased by $30.6 million or 7%, primarily due to a decrease in carried interest and lower average equity assets, partially offset by higher average money market assets.