Brookfield (BN) Q3 2024 earnings summary

Executive summary

• Achieved record distributable earnings before realizations of $1.3 billion for Q3 2024, up 19% year-over-year, and $4.6 billion for the last twelve months, with total distributable earnings of $1.3 billion for the quarter and $6.0 billion for the LTM.

• Net income for the quarter was $1.5 billion, with $64 million attributable to shareholders, and common equity increased to $42.4 billion as of September 30, 2024.

• Fee-bearing capital rose 23% year-over-year to $539 billion, with $21 billion inflows in Q3 and $135 billion over the LTM.

• Over $17 billion in asset monetizations and $20 billion committed to new investments in recent months, with $30 billion+ in financings executed.

• Strategic partnerships and acquisitions included Castlelake, SVB Capital, Cyxtera, and ATC India, expanding platforms and international reach.

Financial highlights

• Distributable earnings before realizations: $1.3 billion ($0.80/share) for Q3; $4.6 billion ($2.90/share) for LTM; total distributable earnings: $1.3 billion ($0.84/share) for Q3; $6.0 billion ($3.78/share) for LTM.

• Net income attributable to shareholders: $64 million for Q3, $908 million for LTM.

• Fee-related earnings in asset management grew 14% year-over-year, driven by credit funds and insurance inflows.

• Wealth solutions earnings doubled year-over-year, supported by the American Equity Life acquisition and strong annuity sales.

• Quarterly dividend of $0.08/share declared, payable December 31, 2024.

Outlook and guidance

• Management expects continued strong fundraising and earnings growth into 2025, targeting 15%+ annualized total returns per share and 20%+ annual distributable earnings growth over the next five years.

• Annualized earnings for Wealth Solutions expected to grow from $1.5 billion to $2 billion in the near term.

• Anticipates scaling private wealth and retail fundraising to nearly $40 billion annually within five years.