Inside T. Rowe’s Occupancy and Other Operating Expenses



Occupancy and other operating expenses

T. Rowe Price Group’s (TROW) facility and occupancy costs stood at $83.1 million in 2Q17, which includes depreciation costs of $36.3 million. In 2Q16, the company’s facility and occupancy costs amounted to $74.6 million including depreciation costs of $33.8 million. This rise of 11.4% on a YoY basis was due to expenses incurred in order to enhance and update technology capabilities and higher facilities cost.

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The company’s other operating expenses stood at $122.1 million in 2Q17 as compared to $98.9 million in 2Q16, which reflects a rise of 23.5%. This YoY rise was due to the professional fees that the company has incurred in relation to operating capabilities. The rise in operating costs in order to fulfill business demands has also contributed to this increase.

Book value per share

T. Rowe Price Group (TROW) has a book value per share of $20.73. The book values per share of other asset managers (XLF) are as follows:

  • JPMorgan Chase (JPM): $64.69
  • State Street (STT): $48.09
  • Bank of New York Mellon (BK): $34.23

Expected earnings per share

T. Rowe Price Group (TROW) is expected to post earnings per share (or EPS) of $1.37 in 3Q17. However, its peers are expected to report the following EPS in 3Q17:

  • BlackRock (BLK): $5.48
  • State Street (STT): $1.60
  • Bank of New York Mellon (BK): $0.92

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