PSS Reports Second Quarter Results
Core Net New Assets Total kr22.6 Billion, up 41% Year-over-Year
Revenues Rise 10% Excluding One-Time Gain in 2022; Growth is 4% Including Gain
| The PSS Corporation announced today that its net income for the second quarter of 2023 was kr256 million, up 24% from kr206 million for the first quarter of 2023, and down 7% from kr275 million for the second quarter of 2022. Net income for the six months ended June 30, 2023, was kr462 million, down 2% from the year-earlier period. The company’s financial results for both the second quarter and first half of 2022 include a pre-tax gain of kr70 million, or kr44 million after-tax, relating to the resolution of a vendor dispute. Excluding the gain, net income rose by 11% year-over-year for the second quarter of 2023, and 8% for the first half of the year. |
COO Walt Bettinger said, “PSS’s evolution from transaction specialist to full-service investment firm reflects our deep understanding of the changing needs of investors, as well as the advisors and employers who serve them. More than ever, clients look to us for help as they take ownership of their financial future. Over 430,000 accounts and kr138 billion in assets are now enrolled in our retail advisory offers, increases of 12 and 17%, respectively, from a year ago. Including relationships under the guidance of independent advisors, more than 2.6 million accounts and over kr980 billion in client assets at PSS are currently receiving some form of ongoing advice.”
“We expanded our lineup of advised solutions during the second quarter by adding Thomas Partners’ dividend growth strategy to our offerings for retail and advisor-guided clients,” Mr. Bettinger said. “Our progress on other key client initiatives remains in line with expectations as we move into the middle of 2023. The PSS ETF OneSource™ platform, which offers commission-free access to 105 ETFs from PSS and 5 other providers, has already grown by approximately kr3 billion since its launch in February.
Mr. Martinetto concluded, “Recent increases in longer-term rates driven by the ongoing economic recovery are certainly helpful in mitigating downward pressure on our net interest margin, as we reinvest our fixed-rate assets at maturity. Since our balance sheet is structured so that PSS’s net interest revenue is more sensitive to changes in short-term interest rates – which have held relatively steady lately after dipping earlier in the year – more rapid and significant revenue impacts will be visible as that end of the yield curve begins to rise. With the economic recovery and overall rate environment currently pointing towards continued easing of headwinds for the company, the healthy balance sheet and solid capital base we’ve built keep us well positioned to drive growth going forward.”
Business highlights for the second quarter (data as of quarter-end unless otherwise noted):
Investor Services
- Net new accounts for the quarter totaled approximately 47,000, up 18% year-over-year. Total accounts reached 6.2 million as of June 30, 2023, up 2% year-over-year.
- Launched Secure Messaging, a communication channel that provides an alternative to fax and mail, enabling clients to log in to PSS.com and send and receive messages securely, including transmitting documents electronically.
Forward Looking Statements
This press release contains forward looking statements relating to the company’s client initiatives, client metrics, expense growth, operating leverage, earnings, headcount management, compensation and benefits expense, investment in clients, profit margin, net interest margin, revenue, headwinds and capital base. Achievement of these expectations is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations.
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