EQH - Earnings call transcript Q2 2024 | Equitable Holdings, Inc.

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Operator

Thank you for standing by. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitable Holdings 2024 Second Quarter Earnings Results Conference Call. [Operator Instructions] I would now like to turn the call over to Erik Bass, Head of Investor Relations.

You may begin.

Erik Bass

you. Thank welcome Second and Call. XXXX Equitable to morning, Quarter Holdings Earnings Good for found be call our Material can ir.equitableholdings.com. on today's website at

begin, SEC rules to like regulations regarding information is I some and and we forward-looking certain the today we note to subject disclosure. of present Before that would

or information. of to results harbor the Our in language differ our forward-looking such on from materially by may X presentation safe additional for statements. expressed Slide those indicated Please refer

Pearson, Mark Financial President Chief me President on Onur are Joining of Global Robin AllianceBernstein's Chief call of Erzan, Officer our of Marks, AllianceBernstein's business. Holdings; and Client Officer; and Equitable Financial Jackie today's Executive Lane, Officer; Group Chief Head Wealth Equitable and Raju, Financial; Nick Private

may website will be that Reconciliations measures measures. directly the the we financial accepted GAAP supplement. certain be generally I on call, to over Relations are based now these the principles, this our also as measures accounting Investor most presentation financial slide non-GAAP Mark. measures During to in comparable will release, call known not of and of non-GAAP and on our turn found portion earnings discussing

Mark Pearson

and provided are growth the May, and is AllianceBernstein and on Equitable well market, Investor macro showcased today's momentum, demographic retirement across our and on be and our executing great for morning, you businesses. team management Day continues targets quarter building Management Asset in current ambitious to U.S. It Management We Equitable Retirement, time operate strategy. driven to focused our a company's positioned trends the joining entire thank second Holdings' results favorable by at Good strong growth to tailwinds. the last capitalize earnings call. organic and Wealth

shareholders. and discuss in to in feel on confident I ability plan, well we I'll our our to tracking commitments a deliver our As against are minutes, few

operating share basis. $X.XX the Non-GAAP million earnings $X.XX, First, I'll Adjusting XX% from were for is the which nonrecurring turning quarter. highlights or prior provide non-GAAP a per XX% to is to per year-over-year up X. above few XX% XX% share, guidance. second items operating up the on and our to Slide year which EPS $XXX was period, annualized a growth in compared

Assets increased $XXX of Wealth and businesses. another net favorable XX% under administration Management management supported Asset inflows and by to and our billion, year-over-year markets Retirement, quarter across positive Management

We XX% range payout to during XX% target Turning capital. the which our ratio, returned to quarter, to $XXX of million equates to within XX%. shareholders a

additional continue RBC the $X.X We a the XXX% holding approximately we XXX% at million combined to as target. flexibility, XXX%, And XXX% above ordinary and to later an billion with maintain year. from have Robin dividend Arizona approval insurance dividend capital we our to paid an of In take will quarter company the our cash in NAIC entity. of ending shortly, discuss ratio of to July, $XXX

a result, track to this $X.X noninsurance of As XXXX, of approximately billion from coming XX% $X.X in generate cash billion to we businesses. with on remain

had results. growth. business another We of very quarter our organic to strong Turning

driver inflows, we The net with sales Retirement with growth, be net X% XX% to of of which rate. Our $X.X annualized In up billion businesses Retirement translates advisory Wealth year-over-year. organic product, organic another Individual billion continues for $X.X demand growth primary RILA industry-leading produced Management, inflows. strong quarter a our strong to reported of

second billion positive marking to net quarter of reported the growth. consecutive organic inflows, $X.X AB Moving Management. Asset of

and equity Bernstein the AB's also to see operating $X.X Second quarter retail from Research as positive momentum benefit markets. active net reflecting the leverage basis margin in operating inflows good improved billion, XXX higher adjusted continues channel. points AB the were deconsolidation to year-over-year,

Equitable. as a milestone annuity business, opportunity Finally, for which important our out future building I an see in want to we in-plan growth highlight key

received we from totaled X quarter, over LifePath first inflows clients, Paycheck $XXX BlackRock the million. which This

will previously, we've lumpy. As be these mentioned flows

discussions when we and have flows the in minimal currently first the we more half fund, other We're XXXX. guaranteed we're defined and the new quarter visibility third income having manager potential the in expect into asset for plans also plans will across complete of to pleased fourth recognition funding While the solutions need plans. partners, contribution with of don't the quarter, with within industry see

a $X X, XX% we're to and on Investor XX% tracking billion I ratio to provide operating take Now minutes are update annually. Slide scorecard how a payout Day our targets, deliver XXXX, targets. which X against by share non-GAAP grow earnings per against to XX% XX% cash generation primary we to want to our an provided to few financial On annual grow

billion $X.X generate is XXXX to XXXX, of from to X% with We expect our up consistent billion which plan. and in cash $X.X to XX%

release we market forward, driven we're to expenses cash yields us as off. the business actions flow Legacy growth, business enhance steadily of taking portfolio cash This Looking profitable new expect return increase capital and reduce annual to regardless our environment. generation, enables to strong capital consistently by runs shareholders investment and to

had the end to range. target XX% XX%, payout quarters, XX% we've of our past a ratio of Over X upper at the

time this period, by During XX%. have we outstanding shares reduced

equity from the impact Turning a XXXX We to decline elevated slow growth. of XXXX. mortality earnings start lagged due had and market headwinds in in to the

excluding remain the cumulative notable believe XX% through The and annualized reached to we year-to-date. confident an we've growth achieving up quarters growth XX% to X%, EPS X items, up point, past now non-GAAP annualized is XX% rate is we XXXX. EPS, in However, and inflection over

and benefit and expense Given healthy targets repurchases. visibility into trends, organic good investment growth ongoing from share our achieving the income saving

business I'll KPIs Slide achieving of growth segment deeper strategy into for our our little targets. some a Turning and X. go to

start of to defend the of of Since is X%, tailwinds, X% and grow year-to-date growth combination businesses. X% includes target. organic Group is growth Management and our Retirement The to ahead Retirement, first in XXXX, is Individual is AUM our Retirement Asset leading pillar our our core and with strategy strong which, which AUM annualized well In segments, driving XX%, growth. market

In of higher-margin market closed basis growth margins in also by retail of which the joint continues The Research annual will by XXXX. of year-to-date much benefits in against industry AB margins progress Management, private in Nashville is the boost outpace XXX AB another Asset peers coming and to XXX starting to Margins venture target improve of inflows points XXXX by relocation. improve making full April, its points. XXX basis will Bernstein by to fourth from basis the XXX is XXX and billion, to net to with XXX $X.X good from realization the quarter this segments. points

is our adviser expected Wealth earnings and growth We quarter the with under X% strong is up Private offsetting operating $X.X billion strategic for our X. in in $XX had assets trailing a to earnings our focus advisory year. annually, $XXX Our experience. net an inflows, with $XXX Wealth Management totaling organic of in Markets Management the second quarter, We quarter administration, to with businesses. over outflow of confident Year-to-date scaling target second channel million prior increase XX-month remain particularly a in XXXX million. area segment in with closed in line our billion XX% long-term

headwinds shift expect Looking any rates. interest AUA towards to from forward, and lower assets mix we potential higher-margin a short-term growth in offset advisory

to private markets has to $XX billion. AUM year-over-year now grown Turning AB's up platform. is X% and

$XXX $X of $XX its quarter, of first to $XX yield, have billion the with investments this second billion These its AB capital to Equitable's XX% to carve business finished Equitable of billion of to the to billion By commitment, helped general AUM, have expects markets During $XX XXXX, capital revenues. billion deploying is leverage enhance account AB going out. and with this for the able seed assets. grow third-party private accounting

plan. are drive to capital beyond Finally, our we investing XXXX growth

the managers. of received its and BlackRock by from have half to Paycheck annuity provides fund are options Equitable a encouraged within million BlackRock asset As its inflows the initial and launching year are $XXX a in about and offerings with planned and in access milestone in with by are also AB new sizable opportunity the potential I first We new mentioned with XXX(k) interest over which AB embed excited We sponsor second the in solution. first discussions earlier, customers. China. in reached market LifePath additional to we very plans, currently of successfully quarter

market to this a improves. China has and should and AB be Asia take in differentiated materialize, sentiment poised distribution on brand While may when investor time benefit to

to up, on I'm focused the strategic made with detail. our pleased our achieving our I'll in Robin more through quarter remain now we've second Summing commitments. go objectives progress call against to and we over Day to turn the results Investor date,

Robin Raju

you, Thank Mark.

in the of these I items, $X.XX organic $X.XX favorable below-plan related share up share, debt for termination in $X.XX by the results and to non-GAAP was were markets driven $X.XX highlight basis, operating per which year-over-year, the alternative share, to share $X.XX, Turning earnings consolidated will repurchases. per up of XX% Holdings or ongoing EPS healthy non-GAAP and expenses X. the per Notable Equitable a XX% year-over-year. items growth, Adjusting share On investment or quarter. per early income. Slide of million $XXX reported quarter, includes quarter from of

interest and from income the a net continues gains I on rates. modest GAAP appendix, hedge there million in general included and assets want minimal $XXX reflecting in income income investments. by and quarter, losses year-over-year $XXX was impacts Details the investment realized are over million as account from but segment highlight. Investment our in program increased higher are to net few items benefit base to growth the

points invested long-term we but was was our XX% return X% about consistent on yield. at The investments quarter, during new to our basis quarter, second above which X.X%, alternative the money XXX portfolio annualized portfolio below approximately our X% the During the assumption. with guidance

stabilizing year. was $XXX for recent million mortality tracking $XXX range for our investment $XXX claims half first income, Adjusting expectations, million Protection to segment earnings for normal million, with in life trend line of of of were the guidance the which year the with continued in Individual range the the variable activity. a below-plan line

Finally, consolidated rate year second consistent our quarter, was full our in guidance. tax the with XX%

from quarter state rate we report for benefited expect full And the this rate businesses XX% to is the below year. this tax favorable true-up a the XX% quarter. insurance the However, reported

the their businesses. for XX% state tax AB other AB's due quarter, above to approximately for the rate On higher be rate now guidance. XX% project hand, to go-forward payments tax a XX% wealth private tax reported And we our

tax XX% lower a we're For rate going year-to-date results. assuming second the rate similar but to Wealth quarter, the forward, the than in Management, slightly

year-over-year the I'll growth to RILA Spread of notably drivers spread-based a assets. our on from XX% shift the our businesses Retirement. and income rose growth. reflects in our X% Retirement provide most Turning earnings details products, in Slide This X. in Group Individual Retirement more towards more in

of outcomes. need As policyholder economic retirement RILA a product returns a we while solutions with range for discussed meets the good shareholders last providing protected also narrow for quarter,

have Individual peaked, spreads see rate net higher interest new income margins business investment tailwinds we don't on Retirement on from and likely rates have as floating further assets normalized.

continue spread general growing the However, we expect assets. account to with income along

to Retirement. Turning Group

growth in annuities. expect which see directly assets the manages spread We income, benefits The products net majority to particularly implant accounts. Equitable's steady spread-based growth vast AB, in for flows build also as and general of

With portfolio billion a by XXXX. AB's to and remained grown business yields business. Equitable markets the benefits higher track companies, the the billion, billion of from building private of from in reach This has high-growth benefits high-margin $XX our is example and $XXX on help $XX good and synergy Equitable, AB between as to a to

promise and $X has deliver by assets For invested the billion managed acquisition. of strategies example, in value grow now helping carve-out, on the Equitable it

Fees shifted While on both fee-based at AB net they enterprise average products, continue levels, income spread-based inflows current or meaningful levels. retirement trend if higher so from generate should and across has AUM have of towards markets and a are amount mix the from still markets above rising we remain management. and benefited Equitable's to charged wealth in-force more

update I variable Finally, on income. investment to outlook for an provide want our

Our approximately produced in of the currently return project quarter We annualized third year-to-date. returns an second X% portfolio to quarter. alternatives the X% in of and X%

cash cover flow want and I to outlook. X. Slide capital Equitable's position to Moving

by consistent non-GAAP million, capital, earnings a over quarter, second of continue approximately notable an the payout last items, X% and to we count use target. with to returned XX% ex Buybacks our equates the XX% XX% reduced our to XX $XXX attractive we During which have months. be ratio share of

to liquid We quarter capital and Holdings, ended in and offsetting cash comfortably a sequential also effective $X.X buyback due quarter. of our asset management on remain flows. with minimum common above We cash second which have dividend, the on We our billion expenses at still declined to target. the debt interest assets raised allocated basis

XXX% capitalized, to to RBC with ratio combined well above subsidiaries of as also of target. XXX% XX, XXX% an our are NAIC Our insurance estimated XXX% June

the consider and ordinary continues future a as York-specific company. we basis RBC July, adjust As capacity. ratio holding it we $XXX dividend a to some it NAIC the Arizona paid items entity from on New reflects for to reminder, In our focus we insurance better million dividend noneconomic,

extraordinary of We year, of also achieve in billion generation for This later and $X.X regulator billion Management for received from on dividend, that coming to pace Arizona permission which puts the take we Asset an our XX% target from the cash us to full the Wealth plan businesses. $X.X to with our of about year.

the positions returns Wealth capital consistent to advantage take a be market. [ while growth Equitable the to Our at predictable retirement attractive returner ] cash investing of phenomenal of in generation also

me let for over back remarks. Mark? Mark turn Now it to closing

Mark Pearson

driving Management healthy Management is bottom-line results. growth and Asset the highlight results across quarter Retirement, second Equitable's closing, In our which organic Wealth momentum strong businesses, Robin. Thanks,

notable quarter, annual XXXX We're XXXX. and prior expect deliver increased to $X.X XX% non-GAAP EPS XXXX. generate billion of Excluding EPS to this to annually year to by track items, billion grow to growth billion also the through on compared $X cash and in to we $X.X XX% XX%

of half flow, of while growth noninsurance XX% organic from us businesses, enables our shareholders. cash predictable out XX% consistently also comes fund to to paying earnings Our which to

all right environment advantage to of strategy all the the We'll value I it line business stakeholders. now and together, Equitable our open model take the has favorable for questions. deliver current and for growth to Putting believe

Operator

from with comes Instructions] Kamath [Operator Jefferies. question line Your Suneet of first the

Suneet Kamath

Retirement sales. Individual to start on wanted I

guys just sensitive think quarter, interest think I sales how a that the you of Fed talked sense still short-term And be I by lot would then -- do sales funded XXX(k) want being to about of get starts rollovers. cutting a somewhat you if the rates? happening? relatedly, last the is

Nicholas Lane

question. This for Nick. Great. Thank the you is

of persistent buffered consumers annuities. First, coupled sense and with demographic drive we instability changes, macro structural to see a from continuing heightened for growth robust

is population As solutions. America's mentioned, growing you new retirement looking for

we target and them shifting of date equity income funds So into out see protected and solutions.

market grow fastest-growing single to For at digits making reference, RILA next projects segment. the the the years, over high LIMRA X it annually

$X.X view As continue return and through offering up XX% to RILA year-over-year Mark see billion coming sales with flows. We simple positive as spread profile. in we strong highlighted, RILAs in a that returns net

rates, spread As option a reminder, in we the reflect credit reprice pricing to every X interest environment. weeks

equities we low over pioneer think in this value proposition a out to in resonate ago a As continue market decade the core interest rate there. protected of environments,

Suneet Kamath

if then the And starts sensitivity Fed to rates the cutting?

Nicholas Lane

powerful last more On events downside value on impact the annuity than sensitivity out that's And the to capture rates, us I equity any think in to both share exposure over an a markets environment. to that are of a the any We that a sales. believe third-party privileged events The macro, in with years XX but our distribution you I unforeseen you It allows communicating privileged would and protection the proposition position RILAs disproportionate the to has on protected that gives in proposition that continue market. proposition networks. we've a there. the of value story. RILA network sales for value through many And created advisers value fixed say, a for Equitable puts

Suneet Kamath

Got then second my guess, is, it. Robin. And question for I

you've a individual lot product. retirement So of been writing

was could Or LPP product some Now an of you're there? become the group Does capital if ]. with you point? strain a issue more even [ at lot writing sell demand

Robin Raju

Suneet. Thanks,

like we've to offering So of RILA as our been part about. capital-light strategy Nick on that spoke focus very intentional the SCS products

light. shareholders between haven't returning had to to to because that And growth is the or we're growth date, capital capital the we choose funding so

is we'll on earnings well. we If billion growth being makes our to growth partner fund XX% at drive terms to an focus for we're future day in attractive a view see the very $X IR as investment and to third-party will generation. committed we'd XX% good annuities shareholders That capital cash to a and IRR optimization and it the us. to relative think in do returning that us. We do coming of flows cash plan, implant be it for and initiatives, we future source to capital XX% upside to efficient So it fully targets, of continue said,

toolkit to we flows the the and we everything have the in strategy we future So drive cash that out is to support and growth. think need proving the

Operator

comes of from Your line the next question Evercore. Gallagher Tom with

Thomas Gallagher

First question despite you of are volatility some reduce is, still solution type results recently? planning on mortality protection to improved the for

Robin Raju

Yes, Tom.

context, earnings. protection in in our just XX% of So put about it's

the at year million $XXX $XXX to And we're through half, for million Our million. first guide the of $XXX is earnings.

point, amounts we've a But expect good that your still given in you some we're position given. to should face achieve our volatility. that guidance retention, to large quarterly and So

a return improve wouldn't expect result, are continue XXXX. anything improve to we business on volatility. any material as on solutions returns us to reduce exploring -- So early the updates capital business. on this to explore from we and solutions I multiple the that until But

Thomas Gallagher

can these the a something transfer you third And you from might sidecar, to little reinsurance? about at? range get -- it looking full the when it you X it be comment Any Or on Is you're on Robin, things you you risk direction can internally? are do take looking while. in things timing, you you it a something where -- on at potential do But further I leaning are would would XOL solutions? party? Is think where of

Robin Raju

Yes.

about provide the on I look shareholder So -- when to return capital. -- and going I best think value what's

we're making to just on that returns improve simply start and with getting the the business. So could after efficient expenses sure

solutions. also we'll look you some we've to at costs. that's reinsurance sidecars, reinsurers, at looked as excess know, third-party Bermuda, But economic Second, up given

for business. returns So at to to work work on as we this improve to we everything the -- look return have capital

So everything.

Thomas Gallagher

sneak I X right affect The just what getting is products? partnership in. one, those final Maybe where could it will your Is And type if or And pricing just ROI you're now. below of talk about ROE it that with RILA? ROI? BlackRock, how overall ROE, on Okay.

Robin Raju

days IRR excited. $XXX that first monumental products, product. above our other we're the that expected early XX% get product. looking million to to We're similar for get It's time Still on inflows. a Yes. to us that Pricing of for just

Operator

Bhullar And next the of comes JPMorgan. from your Jimmy line question with

Jamminder Bhullar

obviously, how into So absorb just to added enough of comment up years, -- have the newer on come do you're specifically competition lot you in market. seeing And expanded other terms market of the and are on doing And -- the the can what are some pick conditions? the first, on RILA But a the fringes, the companies question terms you has you competition business. supply. last seeing of in the RILA? A in on disciplined? they Or being few over competitors

Nicholas Lane

Robin to still the market, we don't further continue quarter, We Sure. be to price achieve our second to competitive Look, entrants do any as consumer awareness, see we the highlighted, any the pie. focused in in the IRRs competitive and last profitable Equitable, but haven't people a Net-net, business. hear view in competition change growth, we we dynamics. mid-teen any exploring months. on and new growing as continue X on net new seen adviser material the raising At

in difficult the to in are very distribution pioneer position we believe privileged a networks. Both As replicate. Equitable advisers parties, a which our third and space, given we're

new continue to and distribution to leverage from get new our a partnership segments AB innovation, our value disproportionate of Our on we with to track or continue propositions we share. capture insights record networks

distribution weeks. segments. will it's with easy It's advisers. to carriers Traditionally, very it's they through product. get every They difficult advisers as get and very the repriced X to to file get difficult a think different work X a network, So

Jamminder Bhullar

the on number LifePath. obviously, take have out, negative benefited Group flows LifePath for then the flows it's quarters. And If your from you been would and negative several been past at Retirement, I flows,

sort if thought what's labor that business Because market, overall. with have inflation, to some good wage on going tailwind of the unpack I the So you have could market? in just there been a would would

Nicholas Lane

X our Mark of referenced. that, Sure. through new educators. business retirement tax-exempt institutional business we To corporate which -- provider #X our are of comprised or exempt, Group Retirement XXth line, In and grade then is lines, plans the unpack our regarding tax

that more to serve see an X,XXX Here, country work advice school over we with Educators XX% can't worksite market X,XXX this dedicated the slots replicated. contribute where we for demand growing I have on a electing annual through over advisers continue districts to delivering, model of a think, with their advisers we plans advice payroll solutions. basis. retirement solution to be around and And unique

sort From $XX positive continue results core both tax channels tax-exempt of were standpoint, account The up XXX(k) runoff exempt with roughly quarter net and driven flows, surrenders to products. second are markets our higher interest in we the older balances rates positive, performance of in noncore offsetting in of most industry, Like the corporate. in XX% have and Within see from flows our in higher a specifically, market. and higher quarter. outflows million growth the our corporate impacted premium

outflows those people outflows the being of XX% intended. highlight, solutions, of to would power And our other advisers and I of the Equitable retained the use as integrated product are by were participate-driven actual model. speaking However, ,XX% as

Operator

the And with your question comes Krueger Ryan of from KBW. next line

Ryan Krueger

you could spreads be to just from there wanted on them said spread. modest I be downside? peaked. know expect Or here? Retirement was to confirm, I question some likely Robin, pretty Individual First stable you would

Robin Raju

you, Thank Yes. Ryan.

as Retirement higher on mentioned was Individual rates. But up year-over-year, I overall spreads interest XX% call, just investment tailwind So up have X% less we peaked spread year-over-year. see from net earnings the as normalized. The

we manage the more forward, NIM with would rate probably assets, general quarter-to-quarter. tactically line in have going that some from grow to we value. We account book So see would floating do but exposure spread

may and at to I'd spread book going forward, to NIM But -- get expect stabilize noise. stabilize value. NIM grow you some So to

Ryan Krueger

a just Okay. the capital on then from Can product. Paycheck -- just Great. you requirement standpoint. LifePath And

distribution annuity. is on but So would higher also I fixed a know requirement costs no traditional it's be capital think a the typically, there's there and spread like I product

in provide product? any to how So the from about perspective that any on think growth strain -- capital can does you

Robin Raju

Sure, as capital a to get Ryan. product, less new It's $XXX account required that like small, That in about expense. it's want related but happy you general it's one too I we it product. general to we're on the with product. our a SCS don't on It's see still It's much million. details light get capital Generally, as growing. the X% X% being more This we assets, more acquisition a higher IRR. to from XX% said, slightly But count. sense. annuity is -- price more at plus fixed

Operator

Your the next line Wilma Burdis question of from James. comes with Raymond

Wilma Jackson Burdis

any Has no the has Legacy there? thinking there's block? on in good generating to cash It and divestitures, make it's anything needed seems there been shift flow, like changed any pressing but

Robin Raju

at Wilma, earnings It mentioned it yes, IR that flow from It's cash be we changed X% free to by run our time. as of XXXX, going off. nothing's accretive releases to Day. capital be during continues what

and but And core accelerate that so we'll to and and have we If going it let AllianceBernstein, all. at forward, in off. opportunities we'll shareholder we're run focused there retirement on the not the well, line, the strategy as it's if a accretive evaluate of down it's business growth opportunity ambitions part market the our are certainly that growth

Wilma Jackson Burdis

little additional maybe process? it a out opportunity seeing and you kind talk Is of kind Just about what about the long a talk pipeline or the BlackRock like that there. sales to you're relationships, Could the relationship? bit add of

Mark Pearson

there's media the a a opportunity implant this, within of And plans. the for Thanks annuities Mark. Wilma, marketplace. interest in know, excited lot of very you XXX(k) lot very much, discussion we're been it's across about as Look,

AB flows million we're this of quarter. in with position -- to net and happy with already with in partnerships new coming So in very now the in over having BlackRock $XXX be X the

but there that's, managers here We long we a time from products. put are and types be on other the lumpy, talking any if we was And existing expect fund you to land both of relationships flows lead of indeed, out, why the these reasons new right, X future ones. are should to you again,

Operator

Securities. Hughes of the comes Your Truist next Mark question line from with

Mark Hughes

of probably third not XQ you more suggested in the in much likely the be LifePath, expect but Would any to to The activity or quarter, quarters? similar inflows size one future XQ. be

Mark Pearson

we we to much quite -- quarter give is on low. know. can't And is because All this at be stage too should we expect on position number X quarter of got But third and an more accurate then in we've give don't half a at back I more in we you that likely what in know the color flows to XXXX. we're first to moment. come the not

Mark Hughes

we management when you could management in wealth to growth about short-term the things sustain rates. think you offset Then growth pause take as a business, positive of still out? suggested are wealth a kind help a able in the shift mix Does maybe declining assets, those work momentum? good Or

Nicholas Lane

this Nick. is Yes,

out sweeps compared our as to less earnings color is are than billion by mentioned, relatively solutions pretax Mark it Total driven to remained see balance and Maybe of across said, as sweeps Wealth for constant. market such As $X to robust. cash Management growing we XX% cash money on funds. And liquidity players there. it's industry just other related cash earnings only was today, immediate

communicated advisory, highlighted by as billion see XX%. the up on and their reach based we're Investor advice, million growing Day. in for last $X.X practice. earnings in growth adviser $XXX by by productivity, both on run a Wealth for well We believe net XXXX in to plan And our ahead XX-month grow driven flows to this demand tracking Management of business to advisers looking strong brings forward, post-tax meet Looking quarter, organic to the for our the that's market unique we rate, edge consumers

and going So momentum of source we forward. as a see growth that

Operator

from question Mike line comes final your with And the Citi. of Ward

Michael Ward

comp or I concerted the kind -- just were management? low in business expenses just if and or of wondering across G&A normal of expense the there's seemed noticed expenses wondering, types I fairly was anything, any I benefit was quarter. effort sort of

Robin Raju

have And organic grow so Investor to grow income. came grow AB XX% XX%. obviously, that, grow growth, come when to Mike, with were have across net to through, we're which cash Equitable for plans out our seeing expenses investment and our EPS manage billion, but earnings to, to behind we and our and $X from efficiently Day, obviously, targets to to to

So target you're savings big productivity AB we'll estate our get We'll also seeing year. to And firms. reach across continue well. in real as starting then the expense in in both the Equitable efficiency later

it to rate AllianceBernstein through the the In basis comes on well margins improved on addition, from basis and through. as XXX going run for BRS see flow AB quarter over That at That's a deconsolidation quarter. this AB. you're side, points will at

we the about that the organization. feel efficiency So good we managed quite

Michael Ward

for consistently -- for And new your AB was class the then It outlook guys that's on I of credit. in seems getting see wondering maybe peers lead seeing a how like attention. flows, you of kind an AB just asset more private I'm are terms you guys question to ability business? how sorry. wondering

Unknown Executive

for remain comparable directly Mike. our outpace are the traditional Thanks, Sure. peers, part. We our confident in other managers most which the ability publicly asset to traded

minimum. points If couple the flows X peers delivered percentage a of you last consistently, of look and was at hundred the years, at ahead organic positive that the we active always

in X net active active $X If flows. at terms of net half first the billion had you first look the we 'XX, flows. both quarters, had and positive second of And we of

growth In retail and sales the franchise our strong deliver to outlook, terms of continues flows. global

retail, white-based, If broad-based. at global sales, it's our you look in up And it's year-over-year. XX%

gain tax-exempt particularly through in you at share retail, drivers, market franchise. continue we the U.S. If to our look

ETFs, XX billion we That of a top first active our after assets. than provider. at product, years you less X $X.X makes us had If look our ETF

are franchise, income is And fixed taxable do income signature, Japan x continues which to well. Asian remember, Asia the investors our In oriented.

sensitive other current less to they are the rates vis-a-vis some So markets.

yield particularly and and remarkably, in active are franchise. global retail other for the constructed net see flows the outlook second strong on our high active continued demand strategies, income equity taxable we strategies. hence, And for we particularly retail fixed had Japan So in we quarter, equity

wealth that we quarter Global is Wealth, be with an business, record in overall, and Bernstein So strength. low second will tax And our upside alt of more Retail private seasonal management raise to payments to tends channel. had continue there cap seasonally definitely, in Private area be given

you are very in look with on into assets of going year-over-year. second of with earning channels, alternative you means our quarter, up mid-single thing, insurance-oriented which That's strategies digits U.S. last Private the overseas, healthy well if that. momentum we our wrappers new to as credits, new and $X-plus semi-liquid both And addition some deployments in start fees at I'll in billion to our as the flagship are IG expanding pick that's launching the strategy products. say,

So to achieving Investor $XX on of credit our billion goals to in relative billion Day ops. private private track $XXX XXXX remains

Michael Ward

follow-up X specifics so resolution I Great. CRE. general terms on just Wondering us think to have account? update if last guys And or give activity loans any hope on the the you in office question, in could I on of

Robin Raju

Mike. Sure,

ratio above The portfolio X.Xx be CRE on debt-to-service have XX% and for where to We remains to stay healthy. and that occupancy aggregate, coverage our sector, the year. careful in is a office though, watch that's we that they continuously standing. sector good So offices, was have rate, with our it offices obviously, about a last in make work currently sure

So year. extended to we We the X the good we We underlying And X. at about first this X fundamentals. coming loans had up other quarter continue on market in feel the work rates.

have work loans we'll up that feel we through So to the good the year, we overall continue portfolio. about this and coming

Operator

Investor additional conference today's Thank does be you Equitable directed This so the conclude much. Relations Holdings can call. team. Any questions to

You may now disconnect.

Equitable (EQH) 31 Jul 242024 Q2 Earnings call transcript