Brookfield (BN) Q3 2024 earnings summary

Executive summary

• Record distributable earnings before realizations of $1.3 billion, up 19% year-over-year; net income was $1.5 billion for the quarter.

• Advanced over $17 billion in asset monetizations and committed $20 billion to new investments as transaction activity increased.

• Asset Management, Wealth Solutions, and Operating Businesses contributed to growth through fundraising, acquisitions, and resilient cash flows.

Financial highlights

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

• Net income attributable to shareholders was $64 million for Q3 and $908 million LTM; Q3 revenue was $20.6 billion, down 16% year-over-year, mainly due to Private Equity asset dispositions.

• Fee-bearing capital reached $539 billion, up 23% year-over-year; asset management fee-related earnings grew 14%.

• Wealth Solutions earnings doubled year-over-year; insurance assets exceeded $115 billion.

• Declared a quarterly dividend of $0.08 per share, payable December 31, 2024.

Outlook and guidance

• Expected continued earnings momentum into 2025, supported by lower interest rates, improving capital markets, and increased transaction activity.

• Targeting 15%+ annualized total returns per share and 20%+ annual distributable earnings growth over the next five years.

• Wealth Solutions annualized earnings expected to grow from $1.5 billion to $2 billion in the near term; 2% spread earnings anticipated within 12 months.

• Private wealth and retail fundraising targeted to reach nearly $40 billion annually within five years.