Equitable Holdings Inc (EQH, Financial) released its earnings report for the third quarter ended September 30, 2023, on October 31, 2023. The company reported a net income of $1.1 billion, or $3.02 per share, and non-GAAP operating earnings of $413 million, or $1.15 per share. Adjusting for notable items, non-GAAP operating earnings were $468 million, or $1.30 per share.
Financial Performance
Equitable Holdings Inc (EQH, Financial) reported total Assets Under Management/Administration (AUM/A) of $860 billion, a year-over-year increase of 10%, driven by higher markets over the prior twelve months. Net income attributable to Holdings for the third quarter of 2023 was $1.1 billion compared to $594 million in the third quarter of 2022. Non-GAAP operating earnings in the third quarter of 2023 was $413 million compared to $386 million in the third quarter of 2022. Adjusting for notable items, third quarter 2023 Non-GAAP operating earnings were $468 million or $1.30 per share.
Business Segment Highlights
The Individual Retirement segment reported another record quarter with net inflows of $1.7 billion and first year premiums up 28% over the prior year quarter. The Wealth Management segment reported net inflows of $1.6 billion, another quarter of organic growth, supported by a 2% increase in advisor productivity compared to the second quarter of 2023. The Asset Management segment reported net outflows of $1.9 billion with active net flows nearly flat and $1.6 billion of net inflows in the Retail channel.
Shareholder Value and Capital Management
The company returned $315 million to shareholders in the quarter, including $238 million of share repurchases, which is above the company’s payout ratio target of 60-70% of Non-GAAP operating earnings. The company reported cash and liquid assets of $2.0 billion at Holdings, which remains above the $500 million minimum target, with a continued focus on maximizing financial flexibility to support consistent capital return.
Outlook
Equitable Holdings Inc (EQH, Financial) continues to provide an attractive value proposition for investors with diverse sources of earnings driving predictable cash generation of $1.0 billion year-to-date as it remains on track for its $1.3 billion 2023 guidance. This supports the company's capital management program as it continues to consistently deliver on its payout ratio target of 60-70% of Non-GAAP operating earnings.
Explore the complete 8-K earnings release (here) from Equitable Holdings Inc for further details.
