Invesco Reported Diluted EPS of $0.71 in Q3 2021

The independent investment management firm Invesco on Monday reported its financial results for the three months ended 30 September 2021, showing a slight increase in its overall assets under management (AUM). The final AUM for the third quarter of 2021 was $1,528 billion, up 0.2 percent from the second quarter.

According to Invesco, AUM reduced by $14.6 billion due to the net market losses and $4.0 billion because of the foreign exchange (FX) rate movements. In addition, the company reported Diluted EPS of $0.71 for the third quarter. 

In terms of net long-term inflows, $13.3 billion was recorded in the report of Q3 2021, compared to $31 billion in Q2 2021. Institutional net long-term inflows of $11.5 billion and retail net long-term inflows of $1.8 billion are included in the latest figure.

“We continue to see growth from our key capability areas, including ETFs, Fixed Income, China, Solutions, Alternatives and Global Equities. With this growth, we have now had five consecutive quarters of net long-term inflows for the firm, "  Marty Flanagan, President and CEO of Invesco, said. "The momentum we are seeing is producing positive operating leverage and further strengthening our balance sheet and financial flexibility for the future. Our absolute focus on client outcomes, investment readiness, competitive strength and scale position us well for continued organic growth.”

About operating revenues, it reached $463.8 million in Q3 2021, up from $268.5 million in Q3 2020, which is a significant increase. On the other hand, overall operational expenses climbed dramatically in the third quarter, compared to the second quarter of 2021.

“Operating expenses increased $35.7 million in the third quarter as compared to the second quarter, driven by an increase of $35.1 million in transaction, integration and restructuring costs. Transaction, integration and restructuring costs included a benefit of $85.4 million in the second quarter and a third-quarter benefit of $45.7 million as discussed above. Third-party distribution, service and advisory costs were up $6.8 million during the quarter driven by higher average AUM,” Invesco added.