Source: EuroStat – European Statistics
European Commission Statement Brussels, 29 Jan 2025 With this partnership, the EU and Jordan are deepening what is already a long-standing relationship and strong friendship, to better meet common challenges and advance shared values of peace, democracy and human rights.
Source: European Parliament
on the proposal for a Council directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation
(COM(2024)0497 – C10‑0169/2024 – 2024/0276(CNS))
(Special legislative procedure – consultation)
The European Parliament,
– having regard to the Commission proposal to the Council (COM(2024)0497),
– having regard to Articles 113 and 115 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C10‑0169/2024),
– having regard to Rule 84 of its Rules of Procedure,
– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0002/2025),
1. Approves the Commission proposal;
2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
3. Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;
4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
On 7 November 2024, the Council consulted the Parliament on a proposal for a Council Directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation[1] (DAC9).
The DAC9 proposal is closely linked with the 2022 Pillar 2 Directive, which aims to ensure a global minimum level of taxation for multinational enterprise groups (MNEs) and large-scale domestic groups in the EU.
The proposal aims at simplifying the filing process and reduce the administrative burden for MNEs with a view to their reporting obligations under the Pillar 2 Directive. For this purpose, it sets up a system for authorities to exchange information with each other and introduces a standard form, in line with that developed by the OECD/G20 Inclusive Framework, which MNEs and large-scale domestic groups (LSDGs) will have to use to report certain tax-related information. These two elements are pre-requisites under Article 44 of the Pillar 2 Directive to apply the simplified rules for reporting obligations, which allows for a central filing by a designated entity on behalf of the entire group as opposed to individual filings by each constituent entity.
Without the DAC9 proposal, each company that forms part of an MNE would have to file a top-up tax information return in the country where it is based, which can be time‑consuming and complicated.
A swift adoption by the Council of this proposal is essential in order to ensure that the simplified rules for reporting obligations apply in time for the first reporting, which is due to take place by 30 June 2026. The Directive is expected to bring significant reductions of administrative burden, given that the central filing will only concern approximately 4,000 entities, as opposed to around 180,000 who would be required to do an individual filing in the absence of the Directive. DAC 9 is also a tool to guarantee a smoother implementation of Pillar II but will require time to be implemented. Further delays would not help in delivering Pillar II on time.
In view of the technical nature of the proposal and the urgency of adopting the proposal, your rapporteur proposes that Parliament approves the proposal without amendments pursuant to a simplified procedure without amendments (rule 52).
The rapporteur declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.
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Title |
Administrative cooperation in the field of taxation |
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References |
COM(2024)0497 – C10-0169/2024 – 2024/0276(CNS) |
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Date Parliament was consulted |
7.11.2024 |
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Committee(s) responsible |
ECON |
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Rapporteurs Date appointed |
Aurore Lalucq 19.11.2024 |
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Simplified procedure – date of decision |
16.1.2025 |
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Discussed in committee |
16.1.2025 |
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Date adopted |
16.1.2025 |
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Date tabled |
20.1.2025 |
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Source: European Parliament
on European Central Bank – annual report 2024
The European Parliament,
– having regard to the 2023 Annual Report of the European Central Bank (ECB),
– having regard to the ECB’s feedback of 18 April 2024 on the input provided by Parliament as part of its resolution on the ECB’s 2022 Annual Report[1],
– having regard to the Statute of the European System of Central Banks (ESCB) and of the ECB, in particular Articles 2, 15 and 21 thereof,
– having regard to Articles 119, 123(1), 125, 127(1) and (2), 130, 282(2) and 284(3) of the Treaty on the Functioning of the European Union (TFEU),
– having regard to Articles 3 and 13 of the Treaty on European Union (TEU),
– having regard to the Eurosystem staff macroeconomic projections for the euro area of 7 March 2024, 6 June 2024, 12 September 2024, and 12 December 2024,
– having regard to the decisions taken by the ECB Governing Council of 25 January 2024, 7 March 2024, 11 April 2024, 6 June 2024, 18 July 2024, 12 September 2024, 17 October 2024 and 12 December 2024,
– having regard to Eurostat’s inflation estimate of 18 December 2024,
– having regard to the Commission’s Autumn 2024 Economic Forecast published on 26 November 2024,
– having regard to the World Economic Outlook of the International Monetary Fund (IMF) of October 2024,
– having regard to the monetary dialogues with the President of the ECB, Christine Lagarde, of 15 February 2024, 30 September 2024 and 4 December 2024,
– having regard to its decision of 1 June 2023 on the arrangements in the form of an exchange of letters between the European Parliament and the ECB on structuring the practices for interaction in the area of central banking[2],
– having regard to the European Pillar of Social Rights,
– having regard to the approval of the transmission protection instrument (TPI) by the ECB Governing Council of 21 July 2022,
– having regard to the Commission proposal of 28 June 2023 for a regulation of the European Parliament and of the Council on the establishment of the digital euro (COM(2023)0369),
– having regard to the ECB’s first progress report of 24 June 2024 and second progress report of 2 December 2024 on the digital euro preparation phase,
– having regard to the four ECB progress reports of 13 July 2023, 24 April 2023, 21 December 2022 and 29 September 2022 on the digital euro investigation phase,
– having regard to the ECB monetary policy strategy review launched on 23 January 2020 and concluded on 8 July 2021, and to the upcoming 2025 monetary policy strategy assessment,
– having regard to the ECB’s operational framework review published on 13 March 2024,
– having regard to the ECB annual report on the international role of the euro of June 2024,
– having regard to the results of the ECB’s first-ever cyber resilience stress test of 26 July 2024,
– having regard to the ECB’s Financial Stability Review published on 20 November 2024,
– having regard to the publication of the revised Capital Requirements Regulation[3] (‘CRR III’) and Capital Requirements Directive[4] (‘CRD VI’) in the Official Journal of the European Union on 19 June 2024,
– having regard to the results of the ECB’s climate risk stress test of 8 July 2022,
– having regard to the 2024 update of the ECB’s Environmental Statement,
– having regard to the ECB’s Climate and Nature Plan 2024-2025,
– having regard to Rule 142(1) of its Rules of Procedure,
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0003/2025),
A. whereas, according to Eurostat, harmonised index of consumer prices (HICP) inflation reached a level of 2.2 % in the euro area in November 2024;
B. whereas, according to the December 2024 Eurosystem staff macroeconomic projections for the euro area, HICP inflation is projected to decline to 2.1 % in 2025, 1.9 % in 2026, and to increase to 2.1 % in 2027[5];
C. whereas the ECB’s primary objective is to maintain price stability, which it has defined as a level of inflation of 2 % over the medium term;
D. whereas the ECB should support the general economic policies of the EU, thereby contributing to the achievement of the objectives of the EU as laid down in Article 3 TEU;
E. whereas the ECB is politically independent, which means that neither EU institutions and agencies nor Member State governments should seek to influence it;
F. whereas the ECB can take decisions to fulfil its primary objective of maintaining price stability without political interference other than being held accountable;
G. whereas political independence requires the ECB to refrain from taking political actions;
H. whereas Article 123 TFEU and Article 21 of the Statute of the ESCB and of the ECB prohibit the direct monetary financing of governments; whereas the ECB may purchase debt securities on the secondary market if this is necessary to pursue its objectives;
I. whereas the Eurosystem has been built on the principle of monetary dominance;
J. whereas the principal payments from maturing securities purchased under the asset purchase programme (APP) are no longer reinvested and the principal payments from maturing securities purchased under the pandemic emergency purchase programme (PEPP) will no longer be reinvested from January 2025;
K. whereas bank reserves held by credit institutions at the ECB amounted to EUR 3 trillion in December 2024;
L. whereas the euro is the second most important currency globally;
M. whereas the ECB is accountable to Parliament as the EU institution representing EU citizens; whereas this accountability has been maintained at the highest level, with the regular organisation of the Monetary Dialogue, the ECB President’s regular appearances at Parliament plenary sittings and various visits and meetings between Members of Parliament and ECB board members;
General overview
1. Welcomes the role of the ECB in safeguarding monetary and financial stability, which is a necessary precondition for growth and economic stability; underlines that the ECB is the institution responsible for maintaining price stability in the euro area in this regard; notes that, ‘without prejudice to the objective of price stability, the ESCB shall support the general economic policies in the Union’ as laid down in Article 127 TFEU;
2. Underlines that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate, which is to maintain price stability in the euro area and thereby contribute to economic growth, competitiveness and job creation;
3. Highlights the importance of the ECB’s political independence, which should remain untouched; stresses that this independence requires the ECB to in turn refrain from taking political actions; welcomes the institutional cooperation, thereby stressing the importance of the corresponding level of accountability to Parliament;
4. Invites the ECB and the European Parliament to make full use of the accountability and transparency arrangements and, where possible, further enhance these arrangements, without prejudice to the ECB’s independence;
5. Recognises the ECB’s efforts to bring inflation back down to levels commensurate with its target of 2 % over the medium term;
6. Stresses that both the ECB’s monetary policy, delivering on its mandate, and fiscal policies, should work in tandem to help European citizens and households, as well as small businesses;
7. Takes note of the disparities between Member States with regard to inflation levels above or below the ECB’s 2 % target; emphasises that inflation diminishes the purchasing power of fixed incomes, savings and pensions and that it distorts the signalling function of prices, that ensures an efficient allocation of resources, thereby having a negative impact on economic stability;
8. Stresses that inflation triggered a ‘cost of living crisis’ for EU citizens; emphasises therefore the imperative of reducing inflation to its target rate of 2 %; notes that high inflation levels disproportionally affect lower-income households that spend a higher proportion of their budget on necessities; stresses that bringing headline and core inflation back down to their target levels is therefore also important to maintaining social cohesion;
9. Regrets that core inflation still remains high in the euro area (2.7 % in November 2024), with only one euro area Member State reporting core inflation rates below 2 % in November 2024; recalls that this situation generates economic uncertainty, discourages savings and increases citizens’ living costs, particularly affecting those on fixed and limited incomes;
10. Stresses that keeping interest rates too high could harm economic growth; calls on the ECB not to lower interest rates too quickly, given the risk that inflation levels could start increasing again while inflation is already above 2 %; highlights the key role that inflation expectations play and that excessive volatility in inflation rates might distort inflation expectations; invites the ECB to assess the impact of interest rate changes on different economic sectors, among them capital-intensive sectors;
11. Acknowledges that the monetary policy decisions taken by the Governing Council of the ECB since the inflation crisis stemming from the rise in energy prices have put inflation on a path which is compatible with the achievement of the objective of price stability, while avoiding a serious deterioration in economic activity or employment;
12. Recalls that the Eurosystem was built on the principle of monetary dominance and that the economic and monetary union therefore requires solid fiscal policies in the Member States in order to be able to respond to external shocks; recalls the need for adequate implementation of the new fiscal framework to ensure the credibility of fiscal policies at the level of the economic and monetary union; notes that sufficient fiscal space also allows Member States to respond to external shocks; notes the flexibility provided by the new fiscal rules in this regard; points out that Member States can enhance their resilience to external shocks through fiscal measures as well as with growth-enhancing reforms;
13. Recalls that prudent fiscal policies by the Member States can complement the ECB’s efforts to keep inflation low and thereby protect incomes; highlights that addressing excessive public deficit and debt levels is crucial to maintaining a stable economy, sustainable growth and to having the policy space available for governments to respond to adverse shocks; notes in this respect the recent findings of the Financial Stability Review concerning high levels of national debt;
14. Notes that the ECB’s monetary policies aimed at delivering its primary mandate are subject to a proportionality assessment; notes that the proportionality assessment takes into account the impact of monetary policy measures on the broader economy and economic policies;
Monetary policy
15. Strongly welcomes the fact that headline inflation has come down from its peak of 10.6 % in October 2022 to 2.2 % in November 2024;
16. Welcomes the decrease in core inflation from its peak of 7.6 % in March 2023 to 2.7 % in November 2024, but expresses its unease at its historically and persistently high level; notes with concern that high core inflation could translate into higher headline inflation numbers;
17. Notes that it has taken the ECB more than three years to achieve a level of inflation that is commensurate with its target level of 2 %; recalls in this regard the ECB’s incorrect assessment that inflation was expected to be only transitory;
18. Stresses that supply shocks, primarily originating from external sources, were among the key drivers of the inflation surges; recognises that monetary policy has a more direct effect on inflation levels when it stems primarily from demand factors rather than supply factors;
19. Welcomes the ECB’s efforts to regularly update its models; invites the ECB to continue reviewing and improving its models and their role in its policymaking in light of the subpar performance of the models in recent years, in order to learn from previous crises, particularly to better distinguish between demand-driven and supply-side sources of inflation; stresses that economic supply shocks can arise from many sources, among others geopolitical events, climate-related or natural disasters and cyberattacks;
20. Stresses that the inclusion of owner-occupied housing (OOH) in the HICP is desirable for reasons of both representativeness and comparability across countries in the euro area; calls for an acceleration of the roadmap in order to ensure the rapid inclusion of OOH data in the HICP; welcomes the Governing Council of the ECB’s commitment to consider both in its monetary policy assessments and decisions also the available inflation measures regarding the quarterly stand-alone OOH index;
21. Supports the ECB’s decision to scale back its asset purchase programmes, so as to balance market liquidity conditions and inflation levels, in view of the excess liquidity in the market and decreased levels of inflation; welcomes the fact that the asset portfolio under the ECB’s purchasing programmes has been on a downward trend since 2023;
22. Underlines that interest on commercial banks’ holdings of bank reserves resulted in the Eurosystem paying more than EUR 120 billion interest to credit institutions in 2023, amounting to at least 0.8 % of euro area GDP; considers this is a significant subsidy to the banking sector; asks the ECB to mitigate this issue;
23. Stresses that the ECB’s purchase programmes are unconventional policies applicable only during crisis periods that, if not carefully implemented, risk contravening the prohibition on monetary financing under Article 123(1) TFEU; invites the ECB to continue monitoring the gradual reduction of its balance sheet, to limit prolonged potential destabilising effects in the euro area, while monitoring the growth and competitiveness of the EU’s economy; invites the ECB to share insights on the impact of the purchasing programmes on the functioning of financial markets, including the impact on pension funds and pension insurance cooperation;
24. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; underlines that excessive divergence in sovereign yields makes credit conditions inconsistent with the uniform transmission of monetary policy and makes reducing public debt exceedingly difficult; takes note of the establishment of the transmission protection instrument (TPI) in July 2022 as a tool to support the effective transmission of monetary policy;
25. Stresses that diverging interest rates in the euro area are – in the absence of any serious financial disturbances – generally the result of different risk premiums on government bonds reflecting, among other factors, different approaches to fiscal policy; notes that TPI interventions may conceal underlying fiscal challenges; stresses that TPI should be used under the conditions set by the ECB only to address financial market stress unrelated to economic fundamentals; calls on Member States to conduct responsible fiscal policies and ensure sustainable debt levels, thereby ensuring their resilience against current and future shocks;
Digital euro
26. Welcomes the ECB’s progress on the digital euro project and its ongoing dialogue with Parliament; underscores that the digital euro should deliver clear added value to European citizens, including enhanced strategic autonomy in payments, a higher level of competition in the retail payment market, potential to foster innovation in payments and finance, improved financial inclusion and a reliable offline backup payment system; calls on the ECB to clearly communicate these benefits in order to foster public trust and awareness; notes that the EU co-legislators will need to strike the right balance, among others, on holding limits, privacy concerns, competition with private payment solutions and usability in a business context;
27. Considers that the digital euro will only become a success story if it provides tangible added value for European citizens that they can understand; notes that currently many European citizens either have not heard about the digital euro project or remain sceptical; invites the ECB, together with relevant stakeholders, to launch a broad information campaign on the digital euro in order to allay citizens’ concerns;
28. Reiterates that the digital euro will serve as complement to physical cash, that it should not replace cash and that cash will remain widely available and accessible at all times in order to ensure a plurality of means of payment; welcomes, in that context, the proposal for a regulation on the use of euro cash as legal tender;
29. Stresses the need for a cost-based compensation model for the banking sector, which is tasked with the practical implementation of the digital euro project; recalls that the compensation model must guarantee a euro that is free of charge for its users;
30. Calls on the ECB to take due account of financial stability concerns and potential changes in the structure of the financial sector resulting from the introduction of the digital euro; recalls the importance of holding limits, in order not to create additional risks for banks’ balance sheets, especially during crises;
31. Calls on the ECB to prioritise robust privacy safeguards, establishing them as a gold standard for privacy for central bank digital currency (CBDC), to secure public confidence and address citizens’ concerns regarding data protection and autonomy;
Secondary objectives
32. Stresses that the EU’s secondary objectives are indeterminate as currently specified by the Treaties; notes that the supportive nature of the ECB’s secondary objectives complements the primary mandate; according to the Treaties, the EU’s aim is to promote peace, its values and the well-being of its peoples, create balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment;
33. Recalls that without prejudice to the ECB’s primary mandate, the Treaties require it to support the general economic policies of the Union; calls on the ECB to adhere to its mandate when interpreting or acting upon its secondary objectives; stresses that overstepping this mandate touches on the independence of the ECB; considers that maintaining price stability and stable macroeconomic conditions is conducive to creating the right conditions for the implementation of the EU’s general economic policy objectives;
34. Stresses that the ECB’s secondary objectives are best achieved when operating in a stable macroeconomic environment based on predictable price levels that encourages investment; calls on the ECB to include a specific chapter in its annual report explaining how it has interpreted and implemented its secondary objectives;
35. Stresses that the ECB should prevent distortions in the signalling function of prices that ensures an efficient allocation of resources; invites the ECB to further assess to what extent climate change affects its ability to maintain price stability;
36. Insists that the ECB respect the market neutrality approach in its monetary operations;
37. Notes that the ECB’s actions to decarbonise its corporate bond holdings have not strictly followed a market neutral approach;
38. Invites the ECB to review its policies to ensure that these measures promote EU competitiveness whereas such actions should in no way jeopardise the primary objective of the ECB;
39. Calls on the ECB to use all its available tools to ensure that banks take all financial and external risks, including climate and geopolitical risks, seriously; welcomes the ECB’s activities to further enhance the Eurosystem’s risk assessment tools and capabilities in order to better include climate- and environment-related risks, particularly because climate change and extreme weather phenomena could lead to greater price volatility, especially in the agri-food sector; invites the ECB to continue its work on climate risk stress tests developed to assess the resilience of banks and corporations in the face of climate transition risk;
40. Notes the Climate and nature plan 2024-2025; invites the ECB to draft a Geopolitics plan 2025-2030 in order to better understand the implications of war and conflict on price stability and treat all potential sources of external shocks equally;
Other aspects
41. Underlines that a strengthened international role of the euro would lead to lower interest rates in the euro area, increased status for the EU on the international stage and enhanced macroeconomic stability; recalls that strengthening the international role of the euro would contribute to enhancing the EU’s strategic autonomy;
42. Calls on the ECB to look into strengthening the international role of the euro with a view to enhancing its attractiveness as a reserve currency and support market-driven shifts in this direction; notes that the completion of the economic and monetary union could foster the international role of the euro;
43. Notes the ECB’s support for the establishment of a fully fledged European deposit insurance scheme; acknowledges that risk-sharing and risk-reduction are interlinked;
44. Welcomes the attention that the ECB pays to the risks of cyberattacks; calls on the ECB to ensure the safety and security of the monetary system for its users, especially in the light of ongoing geopolitical developments;
45. Considers that financial stability is a prerequisite for effective monetary policy and a resilient financial system; welcomes the finalisation of the Basel III framework and its implementation from 1 January 2025, as it has the potential to strengthen the resilience of the banking sector in this regard; notes, however, the delays in implementation and lack of clarity with regard to implementation by a certain number of other jurisdictions, resulting in an uneven level playing field at the global level;
46. Acknowledges the ECB’s concern regarding the rise of the shadow banking sector and the risk it may pose to financial stability;
47. Encourages collaboration with the Member States and national central banks on financial literacy programmes to empower individuals and businesses to make informed financial decisions;
48. Regrets that only two members of the ECB’s Executive Board and Governing Council are women; reiterates that the nominations to the Executive Board should be gender-balanced, with shortlists submitted to Parliament; urges the euro area Member States to improve the principles of gender equality in their appointment procedures, so that both genders have equal opportunities to serve as governors of their respective national central banks;
49. Reiterates that ECB appointments should be based on objective merit and competence assessment processes;
50. Supports the aim of the ECB to increase female representation by encouraging women to advance in this field; therefore welcomes initiatives such as the ECB Women in Economics Scholarship;
51. Highlights that the latest Financial Stability Review released by the ECB in November 2024 raises concerns over the possibility of an AI-related asset price bubble given the concentration among a few large AI beneficiary firms;
52. Calls for the further enhancement of the ECB’s internal whistleblowing framework to bring it into line with the EU Whistleblower Directive;
53. Invites the ESCB to continue and strengthen its dialogues with national parliaments, which it believes would strengthen the legitimacy and policies of the ESCB;
°
° °
54. Instructs its President to forward this resolution to the Council, the Commission and the European Central Bank.
Source: European Parliament
Question for written answer E-000219/2025
to the Commission
Rule 144
Emmanouil Fragkos (ECR), Galato Alexandraki (ECR)
Greek cuisine ranks among the best in the world and helps to draw millions of tourists every year. In Greek hotels, in catering establishments and patisseries, we see a demand for baklava among foreign visitors. Baklava is made from sweet dough in the form of layers of fine filo pastry containing finely chopped nuts (such as walnuts, pistachios or almonds) together with syrup or honey. It is a traditional sweet which is claimed by many cuisines of the Middle East, the Mediterranean and the Balkans. The technique of rolling dough into fine layers, a key stage in the preparation of baklava, can be traced back to ancient Greece. The Greek dessert known as ‘gastrin’ was made with layers of dough and nuts, which makes it a forerunner of today’s baklava. Türkiye systematically claims this sweet as its own, supporting the confectioners who produce it and promote it on social media. Azerbaijan, too, has an annual baklava festival. It is of the utmost importance that Europe should prepare to respond vigorously in support of the Greek and European sweet.
In view of this:
Submitted: 20.1.2025
Source: European Parliament
Question for written answer E-000231/2025
to the Commission
Rule 144
Christine Schneider (PPE)
Solar Package I entered into force in Germany on 16 May 2024. Some aspects still require Commission approval under State aid rules, however. Those aspects include: increasing the maximum bid amounts for ground-mounted solar power plants; improvements to repower roof-mounted photovoltaic systems; higher remuneration in the commercial rooftop segment; and the sub-segment for special solar power plants, such as those installed on farms, in car parks and in swampland or floating solar power plants. The pending State aid approval creates uncertainty for solar plant operators that would like to either invest in solar plants or are reliant on that approval and higher feed-in tariffs for their operations to be cost effective.
Submitted: 21.1.2025
Source: European Parliament
Question for written answer E-000315/2025
to the Commission
Rule 144
Fernand Kartheiser (ECR)
The recent supplement to Regulation (EU) 2023/1114[1] with regard to regulatory technical standards specifying the adjustment of own funds requirements and minimum features of stress testing programmes for issuers of asset-referenced tokens or e-money tokens is another addition to the daunting number of rules, procedures and laws that the financial sector already has to comply with. Despite the call from the industry to stop adopting additional legislative acts and decrease the administrative burden, as well as the promises and statements of intention to decrease this burden made during many Commissioners’ hearings, this is yet another set of rules. Consequently, I would like to ask the following specific questions:
Submitted: 24.1.2025
Source: European Parliament
Value added tax (VAT) is a crucial revenue stream for both EU and national budgets. However, substantial losses resulting from domestic and cross-border VAT fraud make its enforcement an essential priority amid growing financial demands. Fraudsters, who are regularly part of organised criminal networks, exploit weaknesses in the VAT system, causing government revenue losses worth billions of euros. Over the years, the EU and its Member States have taken a variety of measures to close VAT loopholes, adopting innovative digital tools to facilitate exchange of information and detect and stop fraudulent transactions as fast as possible. Member States have also committed to cooperating more closely, through bodies such as the European Public Prosecutor’s Office and Eurofisc; this has led to the successful dismantling of major VAT fraud networks responsible for billions of euros of damage. While progress has been made, the involvement of multiple actors in combating VAT fraud has raised questions about how to optimise cooperation between these bodies. European Commissioner for Taxation, Wopke Hoekstra, has been tasked with maintaining ambitious efforts to combat tax fraud in the EU, while the Commissioner for Budget, Piotr Serafin, is leading a review of the EU’s anti-fraud structures with a view to enhancing efficiency and cooperation.
Source: European Parliament
1. Article 2 of the Environmental Impact Assessment (EIA) Directive[1] requires Member States to take all the necessary measures to ensure that, before consent is given, projects likely to have significant effects on the environment[2] are subject to a requirement for development consent and an assessment with regard to their effects. Article 6(4) provides that the public concerned shall be given early and effective opportunities to participate in the environmental decision-making procedure and shall be entitled to express comments and opinions when all options are open to the competent authority before the decision is taken[3]. The project in question falls under the scope of the EIA Directive[4]. According to publicly available information, an EIA was carried out in 2013 and the authorisation has since been extended twice. The Commission does not have sufficient information to assess whether the project has undergone a change or extension likely to have significant adverse effects on the environment justifying a new EIA procedure[5].
2. Article 6(1) requires Member States to ensure that the authorities likely to be concerned by the project, by reason of their specific environmental responsibilities or local and regional competences, are given an opportunity to express their opinion on the information supplied by the developer and on the request for development consent[6]. The Commission does not have sufficient information to assess the situation in this respect.
3. W ithout prejudice to the Commission’s role as guardian of the Treaties, Member States are primarily responsible to ensure compliance with EU law, including verifying individual cases of potential breach in the relevant development consent procedures[7].
Source: European Parliament
The European Commission, through Cohesion Policy funds[1] is already contributing to disaster risk management with EUR 14 billion across EU regions, focusing on the most vulnerable and exposed territories.
For Greece, some EUR 1.4 billion is allocated to prevent and manage climate-related risks[2] in the programming period 2021-2027.
Under the shared management and subsidiarity principles governing the Cohesion Policy Funds, the use of the available resources (project selection and implementation of operations) falls under the responsibility of the Member State.
Member States affected by natural disasters may also benefit from the flexibilities provided by the Regional Emergency Support to Reconstruction — RESTORE Regulation which entered into force on 24 December 2024[3].
This will enable Member States to reprogramme part of their Cohesion Policy funds allocations for actions and projects in response to natural disasters, including reconstruction and repair measures to alleviate the negative socioeconomic consequences of natural disasters.
Union support could cover up to 95% of the expenditure and include an additional pre-financing of 25%. This will ease the budgetary pressure on affected Member States and regions.
Finally, the EU Solidarity Fund, upon request, is available to support Member States targeting costs for emergency and recovery operations[4] caused by major natural disasters.
Source: European Parliament
Regulation (EU) No 181/2011 (the regulation)[1] does not define the term ‘mobility equipment’. However, it can be understood as meaning any equipment that is intended to assist persons with disabilities and persons with reduced mobility with their mobility. Thus, electric mopeds could in certain circumstances also be considered as mobility equipment.
In general, persons with disabilities and persons with reduced mobility are entitled to travel with their mobility equipment when using bus and coach transport. However, Article 10(1) of the regulation allows carriers to deny the transport of certain mobility equipment in two cases:
a. If international, Union or national safety legislation, or safety requirements established by the competent authorities prohibit the transporting of the mobility equipment in question; or
b. If the design of the vehicle or the infrastructure, including bus stops and terminals, makes it physically impossible to take on board, alight or carry the person with disabilities or person with reduced mobility in a safe and operationally feasible manner with the mobility equipment in question.
At the moment there are no specific EU level rules applicable to the transport of the electric mopeds of persons with disabilities and persons with reduced mobility on buses and coaches. Safety concerns may justify Member States to adopt national rules prohibiting or limiting the transport of electric mopeds on buses and coaches.
Source: European Parliament
Question for written answer E-000200/2025
to the Commission
Rule 144
Georgiana Teodorescu (ECR), Adrian-George Axinia (ECR), Gheorghe Piperea (ECR), Claudiu-Richard Târziu (ECR), Şerban Dimitrie Sturdza (ECR)
In an interview with the RMC channel on 10 January 2025, former European Commissioner Thierry Breton stated: ‘Let’s enforce our laws in Europe when they are at risk being circumvented and when they could, if not enforced, lead to interference. We did it in Romania, and we will obviously do it if necessary in Germany’, when asked about possible external interference, especially by Elon Musk.
The French politician’s statements cast doubt on the European Union’s position on democratic principles and its respect for the sovereignty of the Member States, especially in the context of the recent elections in Romania and the implications for future electoral processes throughout the Union.
Given that a former European Commissioner made this statement, we ask the following questions:
Submitted: 17.1.2025
Source: European Parliament
Priority question for written answer P-000165/2025
to the Commission
Rule 144
Harald Vilimsky (PfE)
In the context of the EU accession negotiations with Albania, the serious shortcomings in the rule of law and the effect these will have on the enlargement process needs to be addressed. Investments have been made, including EUR 14.7 million from Austria in the EURALIUS project, yet the reform objectives have not been met. The fact that Irena Gojka was given a position in the anti-corruption court in spite of all the controversy evinces the conflicts of interest and shortcomings in the rule of law. Furthermore, a planned ban on TikTok threatens freedom of expression and is viewed as a form of censorship to suppress critics. Shortcomings in the rule of law and restrictions on freedom of expression thus continue to be a problem in Albania.
Submitted: 15.1.2025
Source: European Parliament
The Committee on Regional Development will hold its next meeting in Brussels on Wednesday 19 February from 09:00-12:30 and 14:30-18:30 and on Thursday 20 February 2025 from 09:00-12:30.
Source : © European Union, 2025 – EP
Source: Switzerland – Department of Foreign Affairs in English
Electronic signatures on documents should be recognised in Switzerland and in the European Union (EU). At its meeting on 29 January 2025, the Federal Council instructed the Federal Department of the Environment, Transport, Energy and Communications (DETEC) to draw up a corresponding mandate for negotiating with the EU, in collaboration with the Federal Department of Foreign Affairs (FDFA).
Source: Switzerland – Department of Foreign Affairs in English
At its meeting on 29 January, the Federal Council approved Switzerland’s new reduction target under the Paris Agreement. This corresponds to the reduction path of the Swiss Climate and Innovation Act. By 2035, Switzerland should reduce its greenhouse gas emissions by at least 65 per cent compared to 1990 levels, and by 59 per cent on average between 2031 and 2035. The objectives are to be achieved primarily through domestic measures. At the same time, the Federal Council approved an amendment to the long-term climate strategy.
Source: European Parliament
The next meeting of the Delegation to the Euro-Latin American Parliamentary Assembly (DLAT) is scheduled for:
Monday 17 February 2025, 15.00-18.30,
room SPINELLI 3E2
The meeting will host the 5th High-Level Seminar of the Euroamerica Foundation under the title ‘Latin America and the Caribbean, once again on the radar of European policy’.
Source: European Parliament
Priority question for written answer P-000353/2025
to the Commission
Rule 144
Ondřej Knotek (PfE)
On 15 January 2025, Politico quoted an unnamed EU diplomat as allegedly claiming that ‘the EU should consider starting Article 7 proceedings – penalties that can culminate in a country’s exclusion from EU decision-making – against both Hungary and Austria to send a signal to France, where far-right leader Marine Le Pen is eyeing a fourth run for the presidency in 2027’[1].
Submitted: 27.1.2025
Source: European Investment Bank
The European Investment Bank’s global arm, EIB Global, has signed a €125 million loan agreement with SES, a provider of satellite-enabled content and connectivity solutions, for three satellites of its second-generation medium earth orbit (MEO) system, O3b mPOWER. SES has already launched eight of 13 O3b mPOWER satellites, which operate 8 000 km away from the Earth, delivering high throughput and flexibility.
The loan will enable SES to provide enhanced broadband connectivity through its MEO system, reaching underserved and remote areas across Africa, Asia and Latin America. It will also help close the urban-rural digital divide and improve access to essential services like education, healthcare and e-governance.
“Digital connectivity is essential for economic and social development, particularly in regions where access to broadband is limited. By fostering enhanced connectivity, this collaboration with SES will not only help to bridge the digital divide, but will also unlock new opportunities by improving quality of life for millions of people. The project will also help strengthen Europe’s independence in the area of access to space-based data traffic – reflecting the EIB’s commitment to supporting Europe’s strategic autonomy in the domains of space and global connectivity,” said EIB Vice-President Robert de Groot.
Sandeep Jalan, Chief Financial Officer at SES, said, “We are pleased to have secured this term loan from the EIB, which reflects their confidence in our business and network and underscores our ability to secure funding from diverse sources while bolstering SES’s financial foundation. This agreement further enables us to deliver high-performance, multi-orbit connectivity services securely and reliably to our customers worldwide.”
The loan aligns with the European Union’s Global Gateway initiative, which promotes investment in secure and sustainable infrastructure to connect people and improve lives around the world. It is also part of the EIB’s activities related to the EU Space Programme 2021-2027, strengthening Europe’s position in space technology and innovation.
Background information
About EIB Global
The EIB is the long-term lending institution of the European Union, owned by the Member States. It finances investments that contribute to EU policy objectives.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through our offices across the world.
About SES
SES has a bold vision to deliver amazing experiences everywhere on Earth by distributing the highest quality video content and providing seamless data connectivity services around the world. As a provider of global content and connectivity solutions, SES owns and operates a geosynchronous orbit fleet and medium earth orbit (GEO-MEO) constellation of satellites, offering a combination of global coverage and high-performance services. Using its intelligent, cloud-enabled network, SES delivers high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners around the world. The company is headquartered in Luxembourg and listed on Paris and Luxembourg stock exchanges (Ticker: SESG).
Source: European Investment Bank
UZ Leuven to benefit from €230 million lending agreement between KU Leuven and the European Investment Bank (EIB), to finance its infrastructure plans up to 2031. The works will cover an overhaul of the main Health Sciences campus Gasthuisberg in Leuven. A well-planned layout of medical departments and supporting services will allow for optimised patient- and workflows.
UZ Leuven’s “Health Sciences Campus 2.0” masterplan foresees works on the intensive care units, operating theatres, imaging, nuclear medicine and ambulatory care facilities such as endoscopy and dentistry, as well as works on the pharmacy.
The European Investment Bank will support UZ Leuven 2022-2031 investment plan with a €230 million loan to the Catholic University Leuven (KU Leuven). The hospital will use the financing to support its masterplan of adapting the infrastructure on existing campuses to current research and medical care requirements.
The financing supports UZ Leuven’s “Health Sciences campus 2.0” masterplan, which will further transform its campus into an innovation ecosystem, in-line with Flanders’ ambition to support and develop its knowledge economy, in close collaboration with the KU Leuven. The intensive care units and operating theatres will benefit from new facilities to substitute aging buildings, allowing also to better connect and integrate them with other parts of the care site, including the new construction featuring, hospitalisation facilities and the extension for oncological care.
The loan will also be used to finance research facilities for nuclear medicine, the tissue and biobank facility, as well as a new production site for the hospital pharmacy in Leuven. Next to the investments in the expansion, modernisation and renovation of parts of the Gasthuisberg campus, the EIB loan will also support further renewal of UZ Leuven’s rehabilitation campus Pellenberg, for both hospitalisation and one-day care.
EIB Vice-President Robert de Groot said: “UZ Leuven’s plans will not only help the hospital cater for profound changes to existing care models, it will also further integrate the facilities in the knowledge and innovation ecosystem that Leuven is creating. This is the EIB’s second financing for Leuven’s hospital campus, showing the commitment of the EIB in supporting social infrastructure and financing projects that have a positive impact on citizens.”
“UZ Leuven and KU Leuven greatly appreciate the essential support from EIB. This financing allows us, together with VIPA resources and internal funding, to establish state of the art facilities for both our top patient care programs as well as our research and innovation infrastructure. This way, as a university hospital, we can continue to push boundaries for our patients.” said UZ Leuven CEO prof. dr. Paul Herijgers.
Background information:
The European Investment Bank (EIB) is the EU institution for long-term loans. Its shares are held by the 27 EU Member States, with 5.2% owned by Belgium. The EIB makes long-term financing available for sound investments that contribute towards the EU’s policy objectives. In 2023 the EIB provided over €2.1 billion in financing for Belgian projects.
UZ Leuven is affiliated with KU Leuven university and is the largest tertiary care university hospital in Belgium, tracing its origins to the Sint-Pieter Hospital, established in the heart of the City of Leuven in 1080. Consisting of the Gasthuisberg, Pellenberg and Sint-Rafaël (city) campuses, it’s one of the leading university hospitals in Europe, providing more than 1,800 beds which are served by almost 10,000 employees. Gasthuisberg is the main campus and contains all the highly specialised services, connected to the biomedical facilities of KU Leuven.
Source: European Parliament
The composition of the Bureau is the following: · Chair: Mr Adam JARUBAS (EPP, PL) · 1st Vice-Chair: Ms Tilly METZ (GREENS, LU) · 2nd Vice-Chair: Ms Stine BOSSE (RENEW, DK) · 3rd Vice-Chair: Ms Romana JERKOVIĆ (S&D, HR) · 4th Vice-Chair: Mr Emmanouil FRAGKOS (ECR, EL)
Source: United Kingdom – Executive Government & Departments
Outlines the government’s position on airport expansion and work being done on sustainable aviation fuels.
I wish to update the House on the government’s position regarding airport expansion and the transition to greener aviation.
The government recognises that air connectivity plays a vital role in supporting economic growth across the country, contributing £14 billion to our GDP in 2023 and over 140,000 jobs across the UK in 2022.
However, capacity constraints are hindering the country’s ability to reap the growth benefits of aviation. There is a particular capacity challenge in the south east of England. Heathrow Airport, the largest airport in Europe by passenger traffic, the most internationally connected airport in the world and the UK’s only hub airport, plays a critical role in enabling international connectivity for both passengers and freight. This supports productivity and economic growth. Around 75% of UK long haul flights go from Heathrow and 60% of UK air freight goes through Heathrow. But Heathrow is running at nearly full capacity, which is limiting our potential to compete with major European hubs and holding back growth.
Tackling capacity constraints at Heathrow Airport could unlock growth benefits that a world-class aviation sector can provide. That’s why the government supports and is inviting proposals for a third runway at Heathrow, to be brought forward by the summer.
Expansion could inject billions into our economy, create over 100,000 extra jobs, strengthen Heathrow’s status as a global passenger and air freight hub, and deliver major benefits for passengers, including lower fares and reduced delays.
Once proposals have been received, the government will move at speed to review the Airports National Policy Statement (ANPS), which provides the basis for decision making on granting development consent for a new runway at Heathrow. Any scheme must be delivered in line with the UK’s legal, climate, and environmental obligations.
The government is committed to ensuring that the economic benefits of airport expansions are delivered in a way that considers and addresses environmental and social responsibilities. We are already making great strides in transitioning to greener aviation. Earlier this month, the Sustainable Aviation Fuel (SAF) Mandate became law, requiring 2% of this year’s aviation fuel supply to be from sustainable sources, with the targets reaching 10% in 2030 and 22% in 2040. SAF is one of the key measures required to reach net zero emissions from aviation by 2050: it reduces GHG emissions by around 70% on average when replacing fossil kerosene (jet fuel).
Today (29 January 2025), I am pleased to announce that we will invest £63 million over the next year for the Advanced Fuels Fund, supporting SAF producers across the UK including in areas like Teesside. We have also published today the government’s response to the consultation on a revenue certainty mechanism (RCM), which, once implemented, will encourage investment into the nascent UK SAF industry. Next steps on the RCM will be set out imminently.
Taken together, our SAF commitments will support thousands of jobs, bring down our transport emissions, support our energy security and make the UK a clean energy superpower.
Published 29 January 2025
Source: Scottish Government
Fund to support third sector organisations.
People with learning disabilities will be supported to reach their full potential through a £1.6 million fund.
The Learning Disability Support Fund will be available to third sector organisations to enable them to promote equality and inclusion and improve access to health services and social activities for people with learning disabilities.
The fund will run for 30 months from October 2025, with a total of £325,000 available for the first year and £650,000 per year for the following two years. Organisations can apply for grants of between £75,000 and £250.000.
Minister for Wellbeing, Social Care and Sport Maree Todd said:
“The last 30 years have seen enormous changes in how people with learning disabilities are supported in society, however we recognise there is more work to be done.
“We know the third sector plays a crucial role in improving the lives of people with learning disabilities and this fund will support organisations to enable those they work with to lead fulfilling, independent, and active lives as equal citizens.
“The grants will be used to provide people with education and information on matters such as accessing health services and developing safe relationships.
“In developing the fund, we have taken into account the views expressed by people with learning disabilities in recent consultation and research and we will work closely with the third sector to ensure it makes a difference.”
Celia Tennant, Chief Executive Officer at Inspiring Scotland said:
“We are pleased to be managing the application process for the new phase of the Scottish Government’s Learning Disability Support Fund.
“We know from the past few years managing the Inspiring Inclusion fund the positive impact that empowering third sector organisations can have to deliver support for people in Scotland with learning disabilities to lead happy, healthy lives and create a more inclusive society.”
BACKGROUND
The Learning Disability Support Fund replaces the Inspiring Inclusion Learning Disability Fund.
Source: Eurojust
The investigation into the smuggling group started in May 2020, when three containers arrived in Belgium filled with undeclared cigarettes instead of the supposed construction material destined for Germany. The group tried to avoid suspicion by filling one of the three containers with the declared goods and presenting it correctly to customs. The building materials would then be loaded into the second and third containers to get them through customs. The smuggling did not go unnoticed as customs officers discovered that the containers were filled with undeclared cigarettes.
With the support of the European Anti-Fraud Office, Belgian and German customs launched a cross-border investigation into the criminal group. They discovered that the same method had been used to smuggle over 150 containers filled with cigarettes into the EU. During the investigation, customs authorities also learned that the group was now also unloading cigarettes at warehouses in the Netherlands. The Dutch customs authorities joined the international investigation to take down the smuggling operation.
The cigarettes were manufactured in Türkiye and Iran, then exported to ports worldwide, reloaded and brought into EU ports using forged sea freight documents. The criminal group is suspected of smuggling 150 containers into the EU. The fiscal loss of the smuggling scheme is estimated at EUR 550 million.
The four-year long investigation culminated in an action day coordinated from Eurojust’s headquarters in The Hague. Authorities executed arrest warrants in three countries, leading to two arrests in Belgium, one in the Netherlands and seven in Germany. Seventeen locations and one vehicle were searched where authorities seized multiple phones laptops and paper documents.
The following authorities carried out the operations:
Source: GlobeNewswire (MIL-OSI)
NEW YORK, Jan. 29, 2025 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the fourth quarter and full year of 2024
Fourth Quarter and Full Year 2024 Highlights
| (US$ millions, except per share, % changes YoY) |
4Q24 | Change % | Adjusted change3% |
Organic change % |
2024 | Change % | Adjusted change3% |
Organic change % |
|
| GAAP Solutions revenue | $949 | 10% | $3,593 | 25% | |||||
| Non-GAAP Solutions revenue | $949 | 10% | 9% | 9% | $3,627 | 26% | 10% | 10% | |
| Market Services net revenue | $268 | 8% | 12% | 8% | $1,020 | 3% | 4% | 3% | |
| GAAP net revenue | $1,227 | 10% | $4,649 | 19% | |||||
| Non-GAAP net revenue | $1,227 | 10% | 10% | 9% | $4,683 | 20% | 9% | 8% | |
| GAAP operating income | $517 | 47% | $1,798 | 14% | |||||
| Non-GAAP operating income | $671 | 10% | 13% | 12% | $2,521 | 22% | 11% | 9% | |
| ARR | $2,768 | 7% | 7% | 7% | $2,768 | 7% | 7% | 7% | |
| GAAP diluted EPS | $0.61 | 72% | $1.93 | (7)% | |||||
| Non-GAAP diluted EPS | $0.76 | 5% | 10% | $2.82 | 0% | 11% | |||
Adena Friedman, Chair and CEO said, “2024 was a transformative year for Nasdaq. With the integration of AxiomSL and Calypso largely complete, we’ve made substantial progress as a scalable platform company. We are executing well across our strategic priorities, including driving cross-sell opportunities, innovating across our solutions, and expanding client relationships with our One Nasdaq strategy.
Looking to 2025, we are well positioned to provide more value to our clients while driving profitable and durable growth as the trusted fabric of the world’s financial system.”
Sarah Youngwood, Executive Vice President and CFO said, “After setting ambitious targets, Nasdaq delivered strong revenue growth and profitability across 2024 and is tracking ahead of schedule against our deleveraging and cost synergy targets.
Our achievements this year reflect our team’s relentless focus on our clients and our ability to deliver outsized, long-term growth within our large and expanding market opportunity.”
FINANCIAL REVIEW
2025 EXPENSE AND TAX GUIDANCE UPDATE7
STRATEGIC AND BUSINESS UPDATES
____________
1 Represents revenue less transaction-based expenses.
2 Refer to our reconciliations of U.S. GAAP to non-GAAP Solutions revenue, net revenue, net income attributable to Nasdaq, diluted earnings per share, operating income, operating expenses and organic impacts included in the attached schedules.
3Adjusted change reflects AxiomSL and Calypso on a pro forma basis (including ratable revenue recognition for AxiomSL in 2024 and 2023). Adjusted change also excludes the impacts of foreign currency except for AxiomSL and Calypso, which will be calculated on an organic basis beginning in 2025, and the previously announced one-time revenue benefits in Market Services in 4Q23 and Index in 1Q24. These results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this earnings release.
4 Constitutes revenue from our Capital Access Platforms and Financial Technology segments.
5 Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
6 Organic changes reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture.
7 U.S. GAAP operating expense and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
ABOUT NASDAQ
Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP Solutions revenue, non-GAAP net revenue, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income, and non-GAAP operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.
These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.
We understand that analysts and investors regularly rely on non-GAAP financial measures, such as those noted above, to assess operating performance. We use these measures because they highlight trends more clearly in our business that may not otherwise be apparent when relying solely on U.S. GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our ongoing operating performance.
Organic revenue and expense growth, organic change and organic impact are non-GAAP measures that reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture. Reconciliations of these measures are described within the body of this release or in the reconciliation tables at the end of this release.
Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenue and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Operating results excluding the impact of foreign currency fluctuations are calculated by translating the current period’s results by the prior period’s exchange rates.
Restructuring programs: In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. We further expanded this program in the fourth quarter of 2024 to accelerate our momentum and further optimize our efficiencies (efficiency program). We have incurred costs principally related to employee-related costs, contract terminations, real estate impairments and other related costs and expect to incur additional costs in these areas in an effort to accelerate efficiencies through location strategy and enhanced AI capabilities. Actions taken as part of this program will be complete by the end of 2025, while certain costs may be recognized in the first half of 2026. We expect to achieve benefits primarily in the form of expense synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In connection with the program, we expect to incur pre-tax charges principally related to employee-related costs, consulting, asset impairments and contract terminations over a two-year period. We expect to achieve benefits in the form of both increased customer engagement and operating efficiencies. Costs related to the Adenza restructuring and the divisional alignment programs are recorded as “restructuring charges” in our consolidated statements of income. We exclude charges associated with these programs for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, dividend program, trading volumes, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, environmental, deleveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
WEBSITE DISCLOSURE
Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.
Media Relations Contact
Nick Jannuzzi
+1.973.760.1741
Nicholas.Jannuzzi.@Nasdaq.com
Investor Relations Contact
Ato Garrett
+1.212.401.8737
Ato.Garrett@Nasdaq.com
NDAQF
| Nasdaq, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||
| (in millions, except per share amounts) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Revenues: | ||||||||||||||||
| Capital Access Platforms | $ | 511 | $ | 461 | $ | 1,972 | $ | 1,770 | ||||||||
| Financial Technology | 438 | 399 | 1,621 | 1,099 | ||||||||||||
| Market Services | 1,070 | 778 | 3,771 | 3,156 | ||||||||||||
| Other Revenues | 10 | 10 | 36 | 39 | ||||||||||||
| Total revenues | 2,029 | 1,648 | 7,400 | 6,064 | ||||||||||||
| Transaction-based expenses: | ||||||||||||||||
| Transaction rebates | (548 | ) | (462 | ) | (2,026 | ) | (1,838 | ) | ||||||||
| Brokerage, clearance and exchange fees | (254 | ) | (69 | ) | (725 | ) | (331 | ) | ||||||||
| Revenues less transaction-based expenses | 1,227 | 1,117 | 4,649 | 3,895 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Compensation and benefits | 324 | 305 | 1,324 | 1,082 | ||||||||||||
| Professional and contract services | 44 | 36 | 152 | 128 | ||||||||||||
| Technology and communication infrastructure | 75 | 65 | 281 | 233 | ||||||||||||
| Occupancy | 28 | 30 | 112 | 129 | ||||||||||||
| General, administrative and other | 24 | 52 | 109 | 113 | ||||||||||||
| Marketing and advertising | 20 | 16 | 54 | 47 | ||||||||||||
| Depreciation and amortization | 152 | 125 | 613 | 323 | ||||||||||||
| Regulatory | 18 | 8 | 55 | 34 | ||||||||||||
| Merger and strategic initiatives | 12 | 97 | 35 | 148 | ||||||||||||
| Restructuring charges | 13 | 31 | 116 | 80 | ||||||||||||
| Total operating expenses | 710 | 765 | 2,851 | 2,317 | ||||||||||||
| Operating income | 517 | 352 | 1,798 | 1,578 | ||||||||||||
| Interest income | 8 | 30 | 28 | 115 | ||||||||||||
| Interest expense | (101 | ) | (111 | ) | (414 | ) | (284 | ) | ||||||||
| Other income (loss) | 7 | 5 | 21 | (1 | ) | |||||||||||
| Net income (loss) from unconsolidated investees | 9 | 2 | 16 | (7 | ) | |||||||||||
| Income before income taxes | 440 | 278 | 1,449 | 1,401 | ||||||||||||
| Income tax provision | 85 | 81 | 334 | 344 | ||||||||||||
| Net income | 355 | 197 | 1,115 | 1,057 | ||||||||||||
| Net loss attributable to noncontrolling interests | — | — | 2 | 2 | ||||||||||||
| Net income attributable to Nasdaq | $ | 355 | $ | 197 | $ | 1,117 | $ | 1,059 | ||||||||
| Per share information: | ||||||||||||||||
| Basic earnings per share | $ | 0.62 | $ | 0.36 | $ | 1.94 | $ | 2.10 | ||||||||
| Diluted earnings per share | $ | 0.61 | $ | 0.36 | $ | 1.93 | $ | 2.08 | ||||||||
| Cash dividends declared per common share | $ | 0.24 | $ | 0.22 | $ | 0.94 | $ | 0.86 | ||||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| for earnings per share: | ||||||||||||||||
| Basic | 574.8 | 547.1 | 575.4 | 504.9 | ||||||||||||
| Diluted | 579.7 | 550.6 | 579.2 | 508.4 | ||||||||||||
| Nasdaq, Inc. | |||||||||||||||
| Revenue Detail | |||||||||||||||
| (in millions) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| CAPITAL ACCESS PLATFORMS | |||||||||||||||
| Data and Listing Services revenues | $ | 192 | $ | 189 | $ | 754 | $ | 749 | |||||||
| Index revenues | 188 | 146 | 706 | 528 | |||||||||||
| Workflow and Insights revenues | 131 | 126 | 512 | 493 | |||||||||||
| Total Capital Access Platforms revenues | 511 | 461 | 1,972 | 1,770 | |||||||||||
| FINANCIAL TECHNOLOGY | |||||||||||||||
| Financial Crime Management Technology revenues | 73 | 60 | 273 | 223 | |||||||||||
| Regulatory Technology revenues | 98 | 110 | 352 | 212 | |||||||||||
| Capital Markets Technology revenues | 267 | 229 | 996 | 664 | |||||||||||
| Total Financial Technology revenues | 438 | 399 | 1,621 | 1,099 | |||||||||||
| MARKET SERVICES | |||||||||||||||
| Market Services revenues | 1,070 | 778 | 3,771 | 3,156 | |||||||||||
| Transaction-based expenses: | |||||||||||||||
| Transaction rebates | (548 | ) | (462 | ) | (2,026 | ) | (1,838 | ) | |||||||
| Brokerage, clearance and exchange fees | (254 | ) | (69 | ) | (725 | ) | (331 | ) | |||||||
| Total Market Services revenues, net | 268 | 247 | 1,020 | 987 | |||||||||||
| OTHER REVENUES | 10 | 10 | 36 | 39 | |||||||||||
| REVENUES LESS TRANSACTION-BASED EXPENSES | $ | 1,227 | $ | 1,117 | $ | 4,649 | $ | 3,895 | |||||||
| Nasdaq, Inc. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in millions) | |||||||||
| December 31, | December 31, | ||||||||
| 2024 | 2023 | ||||||||
| Assets | (unaudited) | ||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 592 | $ | 453 | |||||
| Restricted cash and cash equivalents | 31 | 20 | |||||||
| Default funds and margin deposits | 5,664 | 7,275 | |||||||
| Financial investments | 184 | 188 | |||||||
| Receivables, net | 1,022 | 929 | |||||||
| Other current assets | 293 | 231 | |||||||
| Total current assets | 7,786 | 9,096 | |||||||
| Property and equipment, net | 593 | 576 | |||||||
| Goodwill | 13,957 | 14,112 | |||||||
| Intangible assets, net | 6,905 | 7,443 | |||||||
| Operating lease assets | 375 | 402 | |||||||
| Other non-current assets | 779 | 665 | |||||||
| Total assets | $ | 30,395 | $ | 32,294 | |||||
| Liabilities | |||||||||
| Current liabilities: | |||||||||
| Accounts payable and accrued expenses | $ | 269 | $ | 332 | |||||
| Section 31 fees payable to SEC | 319 | 84 | |||||||
| Accrued personnel costs | 325 | 303 | |||||||
| Deferred revenue | 711 | 594 | |||||||
| Other current liabilities | 215 | 146 | |||||||
| Default funds and margin deposits | 5,664 | 7,275 | |||||||
| Short-term debt | 399 | 291 | |||||||
| Total current liabilities | 7,902 | 9,025 | |||||||
| Long-term debt | 9,081 | 10,163 | |||||||
| Deferred tax liabilities, net | 1,594 | 1,642 | |||||||
| Operating lease liabilities | 388 | 417 | |||||||
| Other non-current liabilities | 230 | 220 | |||||||
| Total liabilities | 19,195 | 21,467 | |||||||
| Commitments and contingencies | |||||||||
| Equity | |||||||||
| Nasdaq stockholders’ equity: | |||||||||
| Common stock | 6 | 6 | |||||||
| Additional paid-in capital | 5,530 | 5,496 | |||||||
| Common stock in treasury, at cost | (647 | ) | (587 | ) | |||||
| Accumulated other comprehensive loss | (2,099 | ) | (1,924 | ) | |||||
| Retained earnings | 8,401 | 7,825 | |||||||
| Total Nasdaq stockholders’ equity | 11,191 | 10,816 | |||||||
| Noncontrolling interests | 9 | 11 | |||||||
| Total equity | 11,200 | 10,827 | |||||||
| Total liabilities and equity | $ | 30,395 | $ | 32,294 | |||||
| Nasdaq, Inc. | |||||||||||||||||
| Reconciliation of U.S. GAAP to Non-GAAP Net Income Attributable to Nasdaq and Diluted Earnings Per Share | |||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| U.S. GAAP net income attributable to Nasdaq | $ | 355 | $ | 197 | $ | 1,117 | $ | 1,059 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Adenza purchase accounting adjustment (1) | — | — | 34 | — | |||||||||||||
| Amortization expense of acquired intangible assets (2) | 122 | 95 | 488 | 206 | |||||||||||||
| Merger and strategic initiatives expense (3) | 12 | 97 | 35 | 148 | |||||||||||||
| Restructuring charges (4) | 13 | 31 | 116 | 80 | |||||||||||||
| Lease asset impairments (5) | — | 1 | — | 25 | |||||||||||||
| Net (income) loss from unconsolidated investees (6) | (9 | ) | (2 | ) | (16 | ) | 7 | ||||||||||
| Extinguishment of debt (7) | 4 | — | 4 | — | |||||||||||||
| Legal and regulatory matters (8) | 2 | 23 | 20 | 12 | |||||||||||||
| Pension settlement charge (9) | — | 9 | 23 | 9 | |||||||||||||
| Other (income) loss (10) | (6 | ) | 3 | (15 | ) | 21 | |||||||||||
| Total non-GAAP adjustments | 138 | 257 | 689 | 508 | |||||||||||||
| Non-GAAP adjustment to the income tax provision (11) | (55 | ) | (59 | ) | (208 | ) | (134 | ) | |||||||||
| Tax on intra-group transfer of intellectual property assets (12) | — | — | 33 | — | |||||||||||||
| Total non-GAAP adjustments, net of tax | 83 | 198 | 514 | 374 | |||||||||||||
| Non-GAAP net income attributable to Nasdaq | $ | 438 | $ | 395 | $ | 1,631 | $ | 1,433 | |||||||||
| U.S. GAAP diluted earnings per share | $ | 0.61 | $ | 0.36 | $ | 1.93 | $ | 2.08 | |||||||||
| Total adjustments from non-GAAP net income above | 0.15 | 0.36 | 0.89 | 0.74 | |||||||||||||
| Non-GAAP diluted earnings per share | $ | 0.76 | $ | 0.72 | $ | 2.82 | $ | 2.82 | |||||||||
| Weighted-average diluted common shares outstanding for earnings per share: | 579.7 | 550.6 | 579.2 | 508.4 | |||||||||||||
| (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change. | |||||||||||||||||
| (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. | |||||||||||||||||
| (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months and years ended December 31, 2024 and December 31, 2023, these costs primarily relate to the Adenza acquisition. For the year ended December 31, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business. | |||||||||||||||||
| (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period. | |||||||||||||||||
| (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the year ended December 31, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (6) We exclude our share of the earnings and losses of our equity method investments. This provides a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods. | |||||||||||||||||
| (7) For the three months and year ended December 31, 2024, we recorded costs related to the early extinguishment of debt. This charge is recorded in general, administrative expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (8) For the year ended December 31, 2024, these items primarily included the settlement of a Swedish Financial Supervisory Authority (SFSA) fine and accruals related to certain legal matters. For the three months and year ended December 31, 2023, these charges primarily included accruals related to certain legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. For the year ended December 31, 2023, these accruals were offset with insurance recoveries related to legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (9) For the years ended December 31, 2024 and 2023 and for the three months ended December 31, 2023, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income. | |||||||||||||||||
| (10) For the three months and year ended December 31, 2024, other items include net gains from strategic investments entered into through our corporate venture program, which are included in other income (loss) in our Consolidated Statements of Income. For the three months and year ended December 31, 2023, other items included certain financing costs related to the Adenza acquisition and a net loss from a strategic investments entered into through our corporate venture program. | |||||||||||||||||
| (11) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment. For the three months and year ended December 31, 2024, we recorded a tax benefit related to return to provision adjustments and release of tax reserves due to lapse in statute of limitations. | |||||||||||||||||
| (12) For the year ended December 31, 2024, the completion of an intra-group transfer of intellectual property assets to U.S. headquarters resulted in a net tax expense of $33 million. | |||||||||||||||||
| Nasdaq, Inc. | ||||||
| Reconciliation of U.S. GAAP to Non-GAAP Revenues Less Transaction-Based Expenses | ||||||
| (in millions) | ||||||
| (unaudited) | ||||||
| Year Ended | ||||||
| December 31, 2024 | ||||||
| U.S. GAAP Revenues Less Transaction- Based Expenses |
Adenza purchase accounting adjustment (1) |
Non-GAAP Revenues Less Transaction- Based Expenses |
||||
| CAPITAL ACCESS PLATFORMS | $ | 1,972 | $ | — | $ | 1,972 |
| FINANCIAL TECHNOLOGY | ||||||
| Financial Crime Management Technology revenues | 273 | — | 273 | |||
| Regulatory Technology revenues (1) | 352 | 34 | 386 | |||
| Capital Markets Technology revenues | 996 | — | 996 | |||
| Total Financial Technology revenues | 1,621 | 34 | 1,655 | |||
| SOLUTIONS REVENUES | 3,593 | 34 | 3,627 | |||
| MARKET SERVICES REVENUES, NET | 1,020 | — | 1,020 | |||
| OTHER REVENUES | 36 | — | 36 | |||
| REVENUES LESS TRANSACTION-BASED EXPENSES | $ | 4,649 | $ | 34 | $ | 4,683 |
| (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change. | ||||||
| Nasdaq, Inc. | |||||||||||||||||
| Reconciliation of U.S. GAAP to Non-GAAP Operating Income and Operating Margin | |||||||||||||||||
| (in millions) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| U.S. GAAP operating income | $ | 517 | $ | 352 | $ | 1,798 | $ | 1,578 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Adenza purchase accounting adjustment (1) | — | — | 34 | — | |||||||||||||
| Amortization expense of acquired intangible assets (2) | 122 | 95 | 488 | 206 | |||||||||||||
| Merger and strategic initiatives expense (3) | 12 | 97 | 35 | 148 | |||||||||||||
| Restructuring charges (4) | 13 | 31 | 116 | 80 | |||||||||||||
| Lease asset impairments (5) | — | 1 | — | 25 | |||||||||||||
| Extinguishment of debt (6) | 4 | — | 4 | — | |||||||||||||
| Legal and regulatory matters (7) | 2 | 23 | 20 | 12 | |||||||||||||
| Pension settlement charge (8) | — | 9 | 23 | 9 | |||||||||||||
| Other loss | 1 | 5 | 3 | 7 | |||||||||||||
| Total non-GAAP adjustments | 154 | 261 | 723 | 487 | |||||||||||||
| Non-GAAP operating income | $ | 671 | $ | 613 | $ | 2,521 | $ | 2,065 | |||||||||
| U.S. GAAP revenues less transaction-based expenses | $ | 1,227 | $ | 1,117 | $ | 4,649 | $ | 3,895 | |||||||||
| Non-GAAP revenues less transaction-based expenses | $ | 1,227 | $ | 1,117 | $ | 4,683 | $ | 3,895 | |||||||||
| U.S. GAAP operating margin (9) | 42 | % | 32 | % | 39 | % | 41 | % | |||||||||
| Non-GAAP operating margin (10) | 55 | % | 55 | % | 54 | % | 53 | % | |||||||||
| Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions. | |||||||||||||||||
| (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change. | |||||||||||||||||
| (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. | |||||||||||||||||
| (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months and years ended December 31, 2024 and December 31, 2023, these costs primarily relate to the Adenza acquisition. For the year ended December 31, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business. | |||||||||||||||||
| (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period. | |||||||||||||||||
| (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the year ended December 31, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (6) For the three months and year ended December 31, 2024, we recorded costs related to the early extinguishment of debt. This charge is recorded in general, administrative expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (7) For the year ended December 31, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the three months and year ended December 31, 2023, these charges primarily included accruals related to certain legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. For the year ended December 31, 2023, these accruals were offset with insurance recoveries related to legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (8) For the years ended December 31, 2024 and 2023 and for the three months ended December 31, 2023, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income. | |||||||||||||||||
| (9) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses. | |||||||||||||||||
| (10) Non-GAAP operating margin equals non-GAAP operating income divided by non-GAAP revenues less transaction-based expenses. | |||||||||||||||||
| Nasdaq, Inc. | |||||||||||||||||
| Reconciliation of U.S. GAAP to Non-GAAP Operating Expenses | |||||||||||||||||
| (in millions) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| U.S. GAAP operating expenses | $ | 710 | $ | 765 | $ | 2,851 | $ | 2,317 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Amortization expense of acquired intangible assets (1) | (122 | ) | (95 | ) | (488 | ) | (206 | ) | |||||||||
| Merger and strategic initiatives expense (2) | (12 | ) | (97 | ) | (35 | ) | (148 | ) | |||||||||
| Restructuring charges (3) | (13 | ) | (31 | ) | (116 | ) | (80 | ) | |||||||||
| Lease asset impairments (4) | — | (1 | ) | — | (25 | ) | |||||||||||
| Extinguishment of debt (5) | (4 | ) | — | (4 | ) | — | |||||||||||
| Legal and regulatory matters (6) | (2 | ) | (23 | ) | (20 | ) | (12 | ) | |||||||||
| Pension settlement charge (7) | — | (9 | ) | (23 | ) | (9 | ) | ||||||||||
| Other (loss) | (1 | ) | (5 | ) | (3 | ) | (7 | ) | |||||||||
| Total non-GAAP adjustments | (154 | ) | (261 | ) | (689 | ) | (487 | ) | |||||||||
| Non-GAAP operating expenses | $ | 556 | $ | 504 | $ | 2,162 | $ | 1,830 | |||||||||
| (1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations. | |||||||||||||||||
| (2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months and years ended December 31, 2024 and December 31, 2023, these costs primarily relate to the Adenza acquisition. For the year ended December 31, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business. | |||||||||||||||||
| (3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period. | |||||||||||||||||
| (4) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the year ended December 31, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (5) For the three months and year ended December 31, 2024, we recorded costs related to the early extinguishment of debt. This charge is recorded in general, administrative expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (6) For the year ended December 31, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the three months and year ended December 31, 2023, these charges primarily included accruals related to certain legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. For the year ended December 31, 2023, these accruals were offset with insurance recoveries related to legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. | |||||||||||||||||
| (7) For the years ended December 31, 2024 and 2023 and for the three months ended December 31, 2023, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income. | |||||||||||||||||
| Nasdaq, Inc. | |||||||||||||||||||||||||||||||||
| Reconciliation of Adjusted Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses, | |||||||||||||||||||||||||||||||||
| Non-GAAP Operating Income, and Non-GAAP Operating Margin | |||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||
| December 31, 2024 |
December 31, 2023 |
Total Variance | FX & Other (2) | Adjusted YoY | |||||||||||||||||||||||||||||
| Non-GAAP | Non-GAAP | Adenza | Pro Forma (1) | $ | % | $ | $ | % | |||||||||||||||||||||||||
| CAPITAL ACCESS PLATFORMS | |||||||||||||||||||||||||||||||||
| data | |||||||||||||||||||||||||||||||||
| listings | |||||||||||||||||||||||||||||||||
| Data and Listing Services revenues | $ | 192 | $ | 189 | $ | — | $ | 189 | $ | 3 | 2 | % | $ | — | $ | 3 | 2 | % | |||||||||||||||
| Index revenues | 188 | 146 | — | 146 | 42 | 29 | % | — | 42 | 29 | % | ||||||||||||||||||||||
| Workflow and insights revenues | 131 | 126 | — | 126 | 5 | 4 | % | — | 5 | 4 | % | ||||||||||||||||||||||
| Total Capital Access Platforms revenues | 511 | 461 | — | 461 | 50 | 11 | % | — | 50 | 11 | % | ||||||||||||||||||||||
| FINANCIAL TECHNOLOGY | |||||||||||||||||||||||||||||||||
| Financial Crime Management Technology revenues | 73 | 60 | — | 60 | 13 | 22 | % | — | 13 | 22 | % | ||||||||||||||||||||||
| Regulatory Technology revenues | 98 | 110 | (16 | ) | 94 | 4 | 5 | % | (1 | ) | 5 | 6 | % | ||||||||||||||||||||
| Capital Markets Technology revenues | 267 | 229 | 26 | 255 | 12 | 4 | % | — | 12 | 4 | % | ||||||||||||||||||||||
| Total Financial Technology revenues | 438 | 399 | 10 | 409 | 29 | 7 | % | (1 | ) | 30 | 7 | % | |||||||||||||||||||||
| Non-GAAP Solutions revenues (3) | 949 | 860 | 10 | 870 | 79 | 9 | % | (1 | ) | 80 | 9 | % | |||||||||||||||||||||
| Market Services, net revenues | 268 | 247 | — | 247 | 21 | 8 | % | (8 | ) | 29 | 12 | % | |||||||||||||||||||||
| Other revenues | 10 | 10 | — | 10 | — | (1 | )% | — | — | (2 | )% | ||||||||||||||||||||||
| Non-GAAP Revenues less transaction-based expenses | 1,227 | 1,117 | 10 | 1,127 | 100 | 9 | % | (9 | ) | 109 | 10 | % | |||||||||||||||||||||
| Non-GAAP operating expenses | 556 | 504 | 23 | 527 | 29 | 5 | % | (3 | ) | 32 | 6 | % | |||||||||||||||||||||
| Non-GAAP operating income | $ | 671 | $ | 613 | $ | (13 | ) | $ | 600 | $ | 71 | 12 | % | $ | (6 | ) | $ | 77 | 13 | % | |||||||||||||
| Non-GAAP operating margin | 55 | % | 56 | % | 53 | % | |||||||||||||||||||||||||||
| Year Ended | |||||||||||||||||||||||||||||||||
| December 31, 2024 |
December 31, 2023 |
Total Variance | FX & Other (2) | Adjusted YoY | |||||||||||||||||||||||||||||
| Non-GAAP | Non-GAAP | Adenza | Pro Forma (1) | $ | % | $ | $ | % | |||||||||||||||||||||||||
| CAPITAL ACCESS PLATFORMS | |||||||||||||||||||||||||||||||||
| Data and Listing Services revenues | $ | 754 | $ | 749 | $ | — | $ | 749 | $ | 5 | 1 | % | $ | — | $ | 5 | 1 | % | |||||||||||||||
| Index revenues | 706 | 528 | — | 528 | 178 | 34 | % | 16 | 162 | 31 | % | ||||||||||||||||||||||
| Workflow and insights revenues | 512 | 493 | — | 493 | 19 | 4 | % | 1 | 18 | 4 | % | ||||||||||||||||||||||
| Total Capital Access Platforms revenues | 1,972 | 1,770 | — | 1,770 | 202 | 11 | % | 17 | 185 | 10 | % | ||||||||||||||||||||||
| FINANCIAL TECHNOLOGY | |||||||||||||||||||||||||||||||||
| Financial Crime Management Technology revenues | 273 | 223 | — | 223 | 50 | 22 | % | — | 50 | 22 | % | ||||||||||||||||||||||
| Regulatory Technology revenues | 286 | 212 | 149 | 361 | 25 | 7 | % | 1 | 24 | 7 | % | ||||||||||||||||||||||
| Capital Markets Technology revenues | 996 | 664 | 257 | 921 | 75 | 8 | % | 1 | 74 | 8 | % | ||||||||||||||||||||||
| Total Financial Technology revenues | 1,655 | 1,099 | 406 | 1,505 | 150 | 10 | % | 2 | 148 | 10 | % | ||||||||||||||||||||||
| Non-GAAP Solutions revenues (3) | 3,627 | 2,869 | 406 | 3,275 | 352 | 11 | % | 19 | 333 | 10 | % | ||||||||||||||||||||||
| Market Services, net revenues | 1,020 | 987 | — | 987 | 33 | 3 | % | (8 | ) | 41 | 4 | % | |||||||||||||||||||||
| Other revenues | 36 | 39 | — | 39 | (3 | ) | (9 | )% | (2 | ) | (1 | ) | (5 | )% | |||||||||||||||||||
| Non-GAAP Revenues less transaction-based expenses | 4,683 | 3,895 | 406 | 4,301 | 382 | 9 | % | 9 | 373 | 9 | % | ||||||||||||||||||||||
| Operating expenses | 2,162 | 1,830 | 217 | 2,047 | 115 | 6 | % | (4 | ) | 119 | 6 | % | |||||||||||||||||||||
| Operating income | $ | 2,521 | $ | 2,065 | $ | 189 | $ | 2,254 | $ | 267 | 12 | % | $ | 13 | $ | 254 | 11 | % | |||||||||||||||
| Operating margin | 54 | % | 53 | % | 52 | % | |||||||||||||||||||||||||||
| (1) Includes the pro forma results for AxiomSL and Calypso and are presented assuming AxiomSL and Calypso were included in the entire prior year quarterly and full year results and revenue for AxiomSL on-premises contracts were recognized ratably for 2024 and 2023. | |||||||||||||||||||||||||||||||||
| (2) Reflects the impacts from changes in foreign currency exchange rates (except for AxiomSL and Calypso, which will be calculated on an organic basis beginning in 2025) and the exclusion of a non-recurring payment received in 4Q23 recorded within our Market Services business. In addition, the full year also excludes the impact of a one-time revenue benefit related to a legal settlement to recoup revenue recorded within Index in 1Q24. | |||||||||||||||||||||||||||||||||
| (3) Represents Capital Access Platforms and Financial Technology Segments. | |||||||||||||||||||||||||||||||||
| Note: The pro forma results above are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this press release. The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions. | |||||||||||||||||||||||||||||||||
| Nasdaq, Inc. | ||||||||||||||||||||||||||
| Reconciliation of Organic Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses, | ||||||||||||||||||||||||||
| Non-GAAP Operating Income, and Non-GAAP Diluted Earnings Per Share | ||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| December 31, 2024 |
December 31, 2023 |
Total Variance | Other Impacts (1) | Organic Impact (2) | ||||||||||||||||||||||
| Non-GAAP | Non-GAAP | $ | % | $ | % | $ | % | |||||||||||||||||||
| CAPITAL ACCESS PLATFORMS | ||||||||||||||||||||||||||
| Data and Listing Services revenues | $ | 192 | $ | 189 | $ | 3 | 2 | % | $ | — | — | % | $ | 3 | 2 | % | ||||||||||
| Index revenues | 188 | 146 | 42 | 29 | % | — | — | % | 42 | 29 | % | |||||||||||||||
| Workflow and Insights revenues | 131 | 126 | 5 | 4 | % | — | — | % | 5 | 4 | % | |||||||||||||||
| Total Capital Access Platforms revenues | 511 | 461 | 50 | 11 | % | — | — | % | 50 | 11 | % | |||||||||||||||
| FINANCIAL TECHNOLOGY | ||||||||||||||||||||||||||
| Financial Crime Management Technology revenues | 73 | 60 | 13 | 22 | % | — | — | % | 13 | 22 | % | |||||||||||||||
| Regulatory Technology revenues | 98 | 110 | (12 | ) | (10 | )% | (15 | ) | (13 | )% | 3 | 4 | % | |||||||||||||
| Capital Markets Technology revenues | 267 | 229 | 38 | 16 | % | 27 | 12 | % | 11 | 5 | % | |||||||||||||||
| Total Financial Technology revenues | 438 | 399 | 39 | 10 | % | 12 | 3 | % | 27 | 7 | % | |||||||||||||||
| Non-GAAP Solutions revenues (3) | 949 | 860 | 89 | 10 | % | 12 | 1 | % | 77 | 9 | % | |||||||||||||||
| Market Services, net revenues | 268 | 247 | 21 | 8 | % | — | — | % | 21 | 8 | % | |||||||||||||||
| Other revenues | 10 | 10 | — | (1 | )% | — | — | % | — | (2 | )% | |||||||||||||||
| Non-GAAP Revenues less transaction-based expenses | $ | 1,227 | $ | 1,117 | $ | 110 | 10 | % | $ | 12 | 1 | % | $ | 98 | 9 | % | ||||||||||
| Non-GAAP Operating Expenses | $ | 556 | $ | 504 | $ | 52 | 10 | % | $ | 21 | 4 | % | $ | 31 | 6 | % | ||||||||||
| Non-GAAP Operating Income | $ | 671 | $ | 613 | $ | 58 | 10 | % | $ | (9 | ) | (1 | )% | $ | 67 | 12 | % | |||||||||
| Non-GAAP diluted earnings per share | $ | 0.76 | $ | 0.72 | $ | 0.04 | 5 | % | $ | (0.03 | ) | (5 | )% | $ | 0.07 | 10 | % | |||||||||
| Year Ended | ||||||||||||||||||||||||||
| December 31, 2024 |
December 31, 2023 |
Total Variance | Other Impacts (1) | Organic Impact (2) | ||||||||||||||||||||||
| Non-GAAP | Non-GAAP | $ | % | $ | % | $ | % | |||||||||||||||||||
| CAPITAL ACCESS PLATFORMS | ||||||||||||||||||||||||||
| Data and Listing Services revenues | $ | 754 | $ | 749 | $ | 5 | 1 | % | $ | — | — | % | $ | 5 | 1 | % | ||||||||||
| Index revenues | 706 | 528 | 178 | 34 | % | — | — | % | 178 | 34 | % | |||||||||||||||
| Workflow and Insights revenues | 512 | 493 | 19 | 4 | % | 1 | — | % | 18 | 4 | % | |||||||||||||||
| Total Capital Access Platforms revenues | 1,972 | 1,770 | 202 | 11 | % | 1 | — | % | 201 | 11 | % | |||||||||||||||
| FINANCIAL TECHNOLOGY | ||||||||||||||||||||||||||
| Financial Crime Management Technology revenues | 273 | 223 | 50 | 22 | % | — | — | % | 50 | 22 | % | |||||||||||||||
| Regulatory Technology revenues | 386 | 212 | 174 | 83 | % | 165 | 78 | % | 9 | 5 | % | |||||||||||||||
| Capital Markets Technology revenues | 996 | 664 | 332 | 50 | % | 316 | 48 | % | 16 | 2 | % | |||||||||||||||
| Total Financial Technology revenues | 1,655 | 1,099 | 556 | 51 | % | 481 | 44 | % | 75 | 7 | % | |||||||||||||||
| Non-GAAP Solutions revenues (3) | 3,627 | 2,869 | 758 | 26 | % | 482 | 17 | % | 276 | 10 | % | |||||||||||||||
| Market Services, net revenues | 1,020 | 987 | 33 | 3 | % | — | — | % | 33 | 3 | % | |||||||||||||||
| Other revenues | 36 | 39 | (3 | ) | (9 | )% | (2 | ) | (4 | )% | (1 | ) | (5 | )% | ||||||||||||
| Non-GAAP Revenues less transaction-based expenses | $ | 4,683 | $ | 3,895 | $ | 788 | 20 | % | $ | 480 | 12 | % | $ | 308 | 8 | % | ||||||||||
| Non-GAAP Operating Expenses | $ | 2,162 | $ | 1,830 | $ | 332 | 18 | % | $ | 216 | 12 | % | $ | 116 | 6 | % | ||||||||||
| Non-GAAP Operating Income | $ | 2,521 | $ | 2,065 | $ | 456 | 22 | % | $ | 264 | 13 | % | $ | 192 | 9 | % | ||||||||||
| Non-GAAP diluted earnings per share | $ | 2.82 | $ | 2.82 | $ | — | — | % | $ | (0.31 | ) | (11 | )% | $ | 0.31 | 11 | % | |||||||||
| Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions. The sum of the percentage changes may not tie to the percentage change in total variance due to rounding. | ||||||||||||||||||||||||||
| (1) Primarily includes the impacts of the Adenza acquisition and changes in FX rates. The revenue adjustments related to the Adenza acquisition reflect an additional $514 million of total revenue recorded in FY 2024 and $48 million for 4Q24, partially offset by an adjustment to reported 2023 revenues related to AxiomSL ratable revenue recognition of $34 million. | ||||||||||||||||||||||||||
| (2) Organic impact reflects adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture. | ||||||||||||||||||||||||||
| (3) Represents Capital Access Platforms and Financial Technology Segments. | ||||||||||||||||||||||||||
| Nasdaq, Inc. | ||||||||||||||||
| Key Drivers Detail | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Capital Access Platforms | ||||||||||||||||
| Annualized recurring revenues (in millions) (1) | $ | 1,268 | $ | 1,235 | $ | 1,268 | $ | 1,235 | ||||||||
| Initial public offerings | ||||||||||||||||
| The Nasdaq Stock Market (2) | 66 | 28 | 180 | 130 | ||||||||||||
| Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic | 7 | 4 | 14 | 7 | ||||||||||||
| Total new listings | ||||||||||||||||
| The Nasdaq Stock Market (2) | 162 | 100 | 463 | 330 | ||||||||||||
| Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (3) | 13 | 7 | 31 | 23 | ||||||||||||
| Number of listed companies | ||||||||||||||||
| The Nasdaq Stock Market (4) | 4,075 | 4,044 | 4,075 | 4,044 | ||||||||||||
| Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (5) | 1,174 | 1,218 | 1,174 | 1,218 | ||||||||||||
| Index | ||||||||||||||||
| Number of licensed exchange traded products (6) | 401 | 364 | 401 | 364 | ||||||||||||
| Period end ETP assets under management (AUM) tracking Nasdaq indexes (in billions) | $ | 647 | $ | 473 | $ | 647 | $ | 473 | ||||||||
| Total average ETP AUM tracking Nasdaq indexes (in billions) | $ | 632 | $ | 436 | $ | 558 | $ | 396 | ||||||||
| TTM (7) net inflows ETP AUM tracking Nasdaq indexes (in billions) | $ | 80 | $ | 31 | $ | 80 | $ | 31 | ||||||||
| TTM (7) net appreciation ETP AUM tracking Nasdaq indexes (in billions) | $ | 110 | $ | 128 | $ | 110 | $ | 128 | ||||||||
| Financial Technology | ||||||||||||||||
| Annualized recurring revenues (in millions) (1) | ||||||||||||||||
| Financial Crime Management Technology | $ | 278 | $ | 226 | $ | 278 | $ | 226 | ||||||||
| Regulatory Technology | 354 | 325 | 354 | 325 | ||||||||||||
| Capital Markets Technology | 868 | 799 | 868 | 799 | ||||||||||||
| Total Financial Technology | $ | 1,500 | $ | 1,350 | $ | 1,500 | $ | 1,350 | ||||||||
| Market Services | ||||||||||||||||
| Equity Derivative Trading and Clearing | ||||||||||||||||
| U.S. equity options | ||||||||||||||||
| Total industry average daily volume (in millions) | 47.5 | 40.2 | 44.4 | 40.4 | ||||||||||||
| Nasdaq PHLX matched market share | 10.5 | % | 11.5 | % | 10.0 | % | 11.3 | % | ||||||||
| The Nasdaq Options Market matched market share | 5.2 | % | 5.5 | % | 5.5 | % | 6.1 | % | ||||||||
| Nasdaq BX Options matched market share | 1.8 | % | 2.4 | % | 2.1 | % | 3.3 | % | ||||||||
| Nasdaq ISE Options matched market share | 7.2 | % | 6.1 | % | 6.9 | % | 5.9 | % | ||||||||
| Nasdaq GEMX Options matched market share | 2.6 | % | 2.7 | % | 2.6 | % | 2.4 | % | ||||||||
| Nasdaq MRX Options matched market share | 3.0 | % | 2.6 | % | 2.7 | % | 2.0 | % | ||||||||
| Total matched market share executed on Nasdaq’s exchanges | 30.3 | % | 30.8 | % | 29.8 | % | 31.0 | % | ||||||||
| Nasdaq Nordic and Nasdaq Baltic options and futures | ||||||||||||||||
| Total average daily volume of options and futures contracts (8) | 228,955 | 327,680 | 233,610 | 301,320 | ||||||||||||
| Cash Equity Trading | ||||||||||||||||
| Total U.S.-listed securities | ||||||||||||||||
| Total industry average daily share volume (in billions) | 13.6 | 11.2 | 12.2 | 11.0 | ||||||||||||
| Matched share volume (in billions) | 125.2 | 113.3 | 479.4 | 455.6 | ||||||||||||
| The Nasdaq Stock Market matched market share | 14.0 | % | 15.4 | % | 15.1 | % | 15.8 | % | ||||||||
| Nasdaq BX matched market share | 0.3 | % | 0.4 | % | 0.3 | % | 0.4 | % | ||||||||
| Nasdaq PSX matched market share | 0.1 | % | 0.3 | % | 0.2 | % | 0.3 | % | ||||||||
| Total matched market share executed on Nasdaq’s exchanges | 14.4 | % | 16.1 | % | 15.6 | % | 16.5 | % | ||||||||
| Market share reported to the FINRA/Nasdaq Trade Reporting Facility | 47.6 | % | 40.9 | % | 44.3 | % | 36.7 | % | ||||||||
| Total market share (9) | 62.0 | % | 57.0 | % | 59.9 | % | 53.2 | % | ||||||||
| Nasdaq Nordic and Nasdaq Baltic securities | ||||||||||||||||
| Average daily number of equity trades executed on Nasdaq’s exchanges | 669,234 | 637,403 | 651,455 | 666,411 | ||||||||||||
| Total average daily value of shares traded (in billions) | $ | 4.5 | $ | 4.5 | $ | 4.5 | $ | 4.5 | ||||||||
| Total market share executed on Nasdaq’s exchanges | 70.9 | % | 72.0 | % | 71.9 | % | 71.0 | % | ||||||||
| Fixed Income and Commodities Trading and Clearing | ||||||||||||||||
| Fixed Income | ||||||||||||||||
| Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts | 91,471 | 93,128 | 93,747 | 95,625 | ||||||||||||
| (1) Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers. | ||||||||||||||||
| (2) New listings include IPOs, issuers that switched from other listing venues, closed-end funds and separately listed ETPs. For the three months ended December 31, 2024 and 2023, IPOs included 22 and 8 SPACs, respectively. For the years ended December 31, 2024 and 2023, IPOs included 50 and 27 SPACs, respectively. | ||||||||||||||||
| (3) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North. | ||||||||||||||||
| (4) Number of total listings on The Nasdaq Stock Market for the twelve months ended December 31, 2024 and December 31, 2023 included 768 and 600 ETPs, respectively. | ||||||||||||||||
| (5) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North. | ||||||||||||||||
| (6) The number of listed ETPs as of December 31, 2023 has been updated to reflect a revised methodology whereby an ETP listed on multiple exchanges is counted as one product, rather than formerly being counted per exchange. This change has no impact on reported AUM. | ||||||||||||||||
| (7) Trailing 12-months. | ||||||||||||||||
| (8) Includes Finnish option contracts traded on Eurex for which Nasdaq and Eurex had a revenue sharing arrangement, which ended in the fourth quarter of 2023. | ||||||||||||||||
| (9) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility. | ||||||||||||||||
Source: GlobeNewswire (MIL-OSI)
ST. LOUIS, Jan. 29, 2025 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.36 billion for the three months ended December 31, 2024, compared with $1.15 billion a year ago. Net income available to common shareholders of $234.7 million, or $2.09 per diluted common share, compared with $153.2 million, or $1.38 per diluted common share for the fourth quarter of 2023. Non-GAAP net income available to common shareholders of $249.7 million, or $2.23 per diluted common share for the fourth quarter of 2024.
Net revenues of $4.97 billion for the year ended December 31, 2024 compared to $4.35 billion a year ago. Net income available to common shareholders of $694.1 million, or $6.25 per diluted common share, compared with $485.3 million, or $4.28 per diluted common share in 2023. Non-GAAP net income available to common shareholders of $755.9 million, or $6.81 per diluted common share in 2024.
Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “Stifel generated record net revenue and the second highest earnings per share in our history in 2024. The fact that we accomplished this level of performance in a year when our Institutional segment was rebounding from a very difficult operating environment in 2023 is a testament to the strength and diversity of our business model. Given our long history of profitable growth, Stifel is well positioned to capitalize on improving market conditions in 2025 and to achieve our short and long term targets.”
Full Year Highlights
Fourth Quarter Highlights
Other Highlights
| Financial Summary (Unaudited) | ||||||||
| (000s) | 4Q 2024 | 4Q 2023 | FY 2024 | FY 2023 | ||||
| GAAP Financial Highlights: | ||||||||
| Net revenues | $1,364,682 | $1,146,379 | $4,970,320 | $4,348,944 | ||||
| Net income (1) | $234,685 | $153,164 | $694,098 | $485,255 | ||||
| Diluted EPS (1) | $2.09 | $1.38 | $6.25 | $4.28 | ||||
| Comp. ratio | 58.3% | 58.8% | 58.7% | 58.7% | ||||
| Non-comp. ratio | 22.2% | 23.2% | 22.6% | 25.1% | ||||
| Pre-tax margin | 19.5% | 18.0% | 18.7% | 16.2% | ||||
| Non-GAAP Financial Highlights: | ||||||||
| Net revenues | $1,364,721 | $1,146,419 | $4,971,051 | $4,348,958 | ||||
| Net income (1)(2) | $249,710 | $166,587 | $755,896 | $531,524 | ||||
| Diluted EPS (1) (2) | $2.23 | $1.50 | $6.81 | $4.68 | ||||
| Comp. ratio (2) | 58.0% | 58.0% | 58.0% | 58.0% | ||||
| Non-comp. ratio (2) | 21.3% | 22.6% | 21.9% | 24.3% | ||||
| Pre-tax margin (3) | 20.7% | 19.4% | 20.1% | 17.7% | ||||
| ROCE (4) | 20.1% | 14.6% | 15.9% | 11.5% | ||||
| ROTCE (5) | 28.3% | 21.3% | 22.7% | 16.6% | ||||
| Global Wealth Management (assets and loans in millions) | ||||||||
| Net revenues | $865,209 | $766,028 | $3,283,960 | $3,049,962 | ||||
| Pre-tax net income | $316,318 | $301,360 | $1,207,942 | $1,215,822 | ||||
| Total client assets | $501,402 | $444,318 | ||||||
| Fee-based client assets | $192,705 | $165,301 | ||||||
| Bank loans, net (6) | $21,311 | $19,730 | ||||||
| Institutional Group | ||||||||
| Net revenues | $478,335 | $359,292 | $1,592,833 | $1,226,317 | ||||
| Equity | $280,159 | $200,915 | $926,729 | $709,286 | ||||
| Fixed Income | $198,176 | $158,377 | $666,104 | $517,031 | ||||
| Pre-tax net income | $95,681 | $7,771 | $223,400 | $2,100 | ||||
Global Wealth Management
Fourth Quarter Results
Global Wealth Management reported record net revenues of $865.2 million for the three months ended December 31, 2024 compared with $766.0 million during the fourth quarter of 2023. Pre-tax net income was $316.3 million compared with $301.4 million in the fourth quarter of 2023.
Highlights
Net revenues increased 13% from a year ago:
Total Expenses:
| Summary Results of Operations | |||||||
| (000s) | 4Q 2024 | 4Q 2023 | |||||
| Net revenues | $865,209 | $766,028 | |||||
| Transactional revenues | 200,564 | 169,471 | |||||
| Asset management | 405,800 | 330,498 | |||||
| Net interest income | 254,337 | 257,920 | |||||
| Investment banking | 5,198 | 4,562 | |||||
| Other income | (690) | 3,577 | |||||
| Total expenses | $548,891 | $464,668 | |||||
| Compensation expense | 419,466 | 359,376 | |||||
| Provision for credit losses | 11,893 | (37) | |||||
| Non-comp. opex | 117,532 | 105,329 | |||||
| Pre-tax net income | $316,318 | $301,360 | |||||
| Compensation ratio | 48.5% | 46.9% | |||||
| Non-compensation ratio | 14.9% | 13.8% | |||||
| Pre-tax margin | 36.6% | 39.3% | |||||
Institutional Group
Fourth Quarter Results
Institutional Group reported net revenues of $478.3 million for the three months ended December 31, 2024 compared with $359.3 million during the fourth quarter of 2023. Pre-tax net income was $95.7 million compared with $7.8 million in the fourth quarter of 2023.
Highlights
Investment banking revenues increased 49% from a year ago:
Fixed income transactional revenues increased 16% from a year ago:
Equity transactional revenues increased 5% from a year ago:
Total Expenses:
| Summary Results of Operations | |||||||
| (000s) | 4Q 2024 | 4Q 2023 | |||||
| Net revenues | $478,335 | $359,292 | |||||
| Investment banking | 299,221 | 201,102 | |||||
| Advisory | 189,912 | 129,378 | |||||
| Fixed income capital raising | 61,424 | 40,214 | |||||
| Equity capital raising | 47,885 | 31,510 | |||||
| Fixed income transactional | 118,700 | 102,019 | |||||
| Equity transactional | 59,409 | 56,501 | |||||
| Other | 1,005 | (330) | |||||
| Total expenses | $382,654 | $351,521 | |||||
| Compensation expense | 280,261 | 248,970 | |||||
| Non-comp. opex. | 102,393 | 102,551 | |||||
| Pre-tax net income | $95,681 | $7,771 | |||||
| Compensation ratio | 58.6% | 69.3% | |||||
| Non-compensation ratio | 21.4% | 28.5% | |||||
| Pre-tax margin | 20.0% | 2.2% | |||||
Global Wealth Management
Full Year Results
Global Wealth Management reported record net revenues of $3.3 billion for the year ended December 31, 2024 compared with $3.0 billion in 2023. Pre-tax net income of $1.2 billion decreased 1% from 2023.
Highlights
Net revenues increased 8% from prior year:
Total Expenses:
| Summary Results of Operations | |||||||
| (000s) | FY 2024 | FY 2023 | |||||
| Net revenues | $3,283,960 | $3,049,962 | |||||
| Transactional revenues | 752,352 | 654,231 | |||||
| Asset management | 1,536,296 | 1,299,361 | |||||
| Net interest income | 967,712 | 1,086,628 | |||||
| Investment banking | 21,475 | 16,680 | |||||
| Other income | 6,125 | (6,938) | |||||
| Total expenses | $2,076,018 | $1,834,140 | |||||
| Compensation expense | 1,605,148 | 1,415,210 | |||||
| Provision for credit losses | 25,102 | 22,699 | |||||
| Non-comp. opex | 445,768 | 396,231 | |||||
| Pre-tax net income | $1,207,942 | $1,215,822 | |||||
| Compensation ratio | 48.9% | 46.4% | |||||
| Non-compensation ratio | 14.3% | 13.7% | |||||
| Pre-tax margin | 36.8% | 39.9% | |||||
Institutional Group
Full Year Results
Institutional Group reported net revenues of $1.6 billion for the year ended December 31, 2024 compared with $1.2 billion in 2023. Pre-tax net income was $223.4 million compared with $2.1 million in 2023.
Highlights
Investment banking revenues increased 36% from prior year:
Fixed income transactional revenues increased 27% from prior year:
Equity transactional revenues increased 7% from prior year:
Total Expenses:
| Summary Results of Operations | |||||||
| (000s) | FY 2024 | FY 2023 | |||||
| Net revenues | $1,592,833 | $1,226,317 | |||||
| Investment banking | 973,356 | 714,575 | |||||
| Advisory | 577,432 | 465,588 | |||||
| Fixed income capital raising | 209,047 | 141,647 | |||||
| Equity capital raising | 186,877 | 107,340 | |||||
| Fixed income transactional | 393,013 | 308,393 | |||||
| Equity transactional | 215,223 | 201,413 | |||||
| Other | 11,241 | 1,936 | |||||
| Total expenses | $1,369,433 | $1,224,217 | |||||
| Compensation expense | 959,602 | 841,671 | |||||
| Non-comp. opex. | 409,831 | 382,546 | |||||
| Pre-tax net income | $223,400 | $2,100 | |||||
| Compensation ratio | 60.2% | 68.6% | |||||
| Non-compensation ratio | 25.8% | 31.2% | |||||
| Pre-tax margin | 14.0% | 0.2% | |||||
Other Matters
Highlights
| 4Q 2024 | 4Q 2023 | FY 2024 | FY 2023 | |||||||||
| Common stock repurchases | ||||||||||||
| Repurchases (000s) | $45,461 | $141,138 | $242,628 | $518,296 | ||||||||
| Number of shares (000s) | 408 | 2,345 | 3,140 | 8,475 | ||||||||
| Average price | $111.30 | $60.18 | $77.28 | $61.16 | ||||||||
| Period end shares (000s) | 102,171 | 101,062 | 102,171 | 101,062 | ||||||||
| Weighted average diluted shares outstanding (000s) | 112,089 | 111,330 | 110,975 | 113,453 | ||||||||
| Effective tax rate | 8.3% | 21.1% | 21.2% | 26.1% | ||||||||
| Stifel Financial Corp. (8) | ||||||||||||
| Tier 1 common capital ratio | 15.4% | 14.2% | ||||||||||
| Tier 1 risk based capital ratio | 18.2% | 17.2% | ||||||||||
| Tier 1 leverage capital ratio | 11.4% | 10.5% | ||||||||||
| Tier 1 capital (MM) | $4,331 | $3,916 | ||||||||||
| Risk weighted assets (MM) | $23,742 | $22,748 | ||||||||||
| Average assets (MM) | $38,073 | $37,451 | ||||||||||
| Quarter end assets (MM) | $39,896 | $37,727 | ||||||||||
| Agency | Rating | Outlook | ||||||||||
| Fitch Ratings | BBB+ | Stable | ||||||||||
| S&P Global Ratings | BBB | Stable | ||||||||||
Conference Call Information
Stifel Financial Corp. will host its fourth quarter and full year 2024 financial results conference call on Wednesday, January 29, 2025, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.
All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 7408307. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.
Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit www.stifel.com/investor-relations/press-releases.
A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at www.stifel.com/investor-relations.
The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at www.stifel.com/investor-relations.
Cautionary Note Regarding Forward-Looking Statements
This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Summary Results of Operations (Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| (000s, except per share amounts) | 12/31/2024 | 12/31/2023 | % Change | 9/30/2024 | % Change | 12/31/2024 | 12/31/2023 | % Change | ||||||||
| Revenues: | ||||||||||||||||
| Commissions | $ | 203,786 | $ | 173,614 | 17.4 | $ | 183,445 | 11.1 | $ | 756,024 | $ | 673,597 | 12.2 | |||
| Principal transactions | 174,887 | 154,377 | 13.3 | 137,089 | 27.6 | 604,564 | 490,440 | 23.3 | ||||||||
| Investment banking | 304,419 | 205,664 | 48.0 | 243,182 | 25.2 | 994,831 | 731,255 | 36.0 | ||||||||
| Asset management | 405,825 | 330,536 | 22.8 | 382,616 | 6.1 | 1,536,674 | 1,299,496 | 18.3 | ||||||||
| Other income | 3,294 | 9,687 | (66.0 | ) | 18,705 | (82.4 | ) | 43,129 | 8,747 | 393.1 | ||||||
| Operating revenues | 1,092,211 | 873,878 | 25.0 | 965,037 | 13.2 | 3,935,222 | 3,203,535 | 22.8 | ||||||||
| Interest revenue | 500,661 | 516,213 | (3.0 | ) | 510,823 | (2.0 | ) | 2,016,464 | 1,955,745 | 3.1 | ||||||
| Total revenues | 1,592,872 | 1,390,091 | 14.6 | 1,475,860 | 7.9 | 5,951,686 | 5,159,280 | 15.4 | ||||||||
| Interest expense | 228,190 | 243,712 | (6.4 | ) | 251,192 | (9.2 | ) | 981,366 | 810,336 | 21.1 | ||||||
| Net revenues | 1,364,682 | 1,146,379 | 19.0 | 1,224,668 | 11.4 | 4,970,320 | 4,348,944 | 14.3 | ||||||||
| Non-interest expenses: | ||||||||||||||||
| Compensation and benefits | 795,750 | 674,437 | 18.0 | 718,065 | 10.8 | 2,916,229 | 2,554,581 | 14.2 | ||||||||
| Non-compensation operating expenses | 302,731 | 265,947 | 13.8 | 289,945 | 4.4 | 1,125,647 | 1,087,671 | 3.5 | ||||||||
| Total non-interest expenses | 1,098,481 | 940,384 | 16.8 | 1,008,010 | 9.0 | 4,041,876 | 3,642,252 | 11.0 | ||||||||
| Income before income taxes | 266,201 | 205,995 | 29.2 | 216,658 | 22.9 | 928,444 | 706,692 | 31.4 | ||||||||
| Provision for income taxes | 22,196 | 43,511 | (49.0 | ) | 58,153 | (61.8 | ) | 197,065 | 184,156 | 7.0 | ||||||
| Net income | 244,005 | 162,484 | 50.2 | 158,505 | 53.9 | 731,379 | 522,536 | 40.0 | ||||||||
| Preferred dividends | 9,320 | 9,320 | 0.0 | 9,320 | 0.0 | 37,281 | 37,281 | 0.0 | ||||||||
| Net income available to common shareholders | $ | 234,685 | $ | 153,164 | 53.2 | $ | 149,185 | 57.3 | $ | 694,098 | $ | 485,255 | 43.0 | |||
| Earnings per common share: | ||||||||||||||||
| Basic | $ | 2.26 | $ | 1.47 | 53.7 | $ | 1.43 | 58.0 | $ | 6.67 | $ | 4.55 | 46.6 | |||
| Diluted | $ | 2.09 | $ | 1.38 | 51.4 | $ | 1.34 | 56.0 | $ | 6.25 | $ | 4.28 | 46.0 | |||
| Cash dividends declared per common share | $ | 0.42 | $ | 0.36 | 16.7 | $ | 0.42 | 0.0 | $ | 1.68 | $ | 1.44 | 16.7 | |||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 103,856 | 103,934 | (0.1 | ) | 103,966 | (0.1 | ) | 104,066 | 106,661 | (2.4 | ) | |||||
| Diluted | 112,089 | 111,330 | 0.7 | 110,994 | 1.0 | 110,975 | 113,453 | (2.2 | ) | |||||||
Non-GAAP Financial Measures (9)
| Three Months Ended | Year Ended | |||||||||||
| (000s, except per share amounts) | 12/31/2024 | 12/31/2023 | 12/31/2024 | 12/31/2023 | ||||||||
| GAAP net income | $244,005 | $162,484 | $731,379 | $522,536 | ||||||||
| Preferred dividend | 9,320 | 9,320 | 37,281 | 37,281 | ||||||||
| Net income available to common shareholders | 234,685 | 153,164 | 694,098 | 485,255 | ||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | 16,820 | 16,921 | 60,745 | 63,222 | ||||||||
| Restructuring and severance (11) | (430) | — | 10,792 | — | ||||||||
| Provision for income taxes (12) | (1,365) | (3,498) | (9,739) | (16,953) | ||||||||
| Total non-GAAP adjustments | 15,025 | 13,423 | 61,798 | 46,269 | ||||||||
| Non-GAAP net income available to common shareholders | $249,710 | $166,587 | $755,896 | $531,524 | ||||||||
| Weighted average diluted shares outstanding | 112,089 | 111,330 | 110,975 | 113,453 | ||||||||
| GAAP earnings per diluted common share | $2.18 | $1.46 | $6.59 | $4.61 | ||||||||
| Non-GAAP adjustments | 0.14 | 0.12 | 0.56 | 0.40 | ||||||||
| Non-GAAP earnings per diluted common share | $2.32 | $1.58 | $7.15 | $5.01 | ||||||||
| GAAP earnings per diluted common share available to common shareholders | $2.09 | $1.38 | $6.25 | $4.28 | ||||||||
| Non-GAAP adjustments | 0.14 | 0.12 | 0.56 | 0.40 | ||||||||
| Non-GAAP earnings per diluted common share available to common shareholders | $2.23 | $1.50 | $6.81 | $4.68 | ||||||||
GAAP to Non-GAAP Reconciliation (9)
| Three Months Ended | Year Ended | |||||||||||
| (000s) | 12/31/2024 | 12/31/2023 | 12/31/2024 | 12/31/2023 | ||||||||
| GAAP compensation and benefits | $795,750 | $674,437 | $2,916,229 | $2,554,581 | ||||||||
| As a percentage of net revenues | 58.3% | 58.8% | 58.7% | 58.7% | ||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | (4,641) | (9,203) | (22,039) | (32,150) | ||||||||
| Restructuring and severance (11) | 430 | — | (10,792) | — | ||||||||
| Total non-GAAP adjustments | (4,211) | (9,203) | (32,831) | (32,150) | ||||||||
| Non-GAAP compensation and benefits | $791,539 | $665,234 | $2,883,398 | $2,522,431 | ||||||||
| As a percentage of non-GAAP net revenues | 58.0% | 58.0% | 58.0% | 58.0% | ||||||||
| GAAP non-compensation expenses | $302,731 | $265,947 | $1,125,647 | $1,087,671 | ||||||||
| As a percentage of net revenues | 22.2% | 23.2% | 22.6% | 25.1% | ||||||||
| Non-GAAP adjustments: | ||||||||||||
| Merger-related (10) | (12,140) | (7,678) | (37,975) | (31,058) | ||||||||
| Non-GAAP non-compensation expenses | $290,591 | $258,269 | $1,087,672 | $1,056,613 | ||||||||
| As a percentage of non-GAAP net revenues | 21.3% | 22.6% | 21.9% | 24.3% | ||||||||
| Total adjustments | $16,390 | $16,921 | $71,537 | $63,222 | ||||||||
Footnotes
(1) Represents available to common shareholders.
(2) Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.”
(3) Non-GAAP pre-tax margin is calculated by adding total non-GAAP adjustments and dividing it by non-GAAP net revenues. See “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.”
(4) Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity.
(5) Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $80.3 million and $71.1 million as of December 31, 2024 and 2023, respectively.
(6) Includes loans held for sale.
(7) Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets.
(8) Capital ratios are estimates at time of the Company’s earnings release, January 29, 2025.
(9) The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.
(10) Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business.
(11) The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries.
(12) Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments.
Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271- 3610 | www.stifel.com/investor-relations
Source: GlobeNewswire (MIL-OSI)
DUNMORE, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank (“the Company”), announced its unaudited, consolidated financial results for the three and twelve month periods ended December 31, 2024.
Unaudited Financial Information
Net income recorded for the year ended December 31, 2024 was $20.8 million, or $3.60 diluted earnings per share, compared to $18.2 million, or $3.19 diluted earnings per share, for the year ended December 31, 2023. The $2.6 million, or 14% increase in net income resulted primarily from the $7.6 million increase in non-interest income for 2024 compared to 2023. During 2023, the Company sold available-for-sale securities resulting in a $6.5 million loss, $5.1 million net of tax, which was the primary reason for the change in non-interest income. This was partially offset by the $3.7 million increase in non-interest expense.
Net income for the quarter ended December 31, 2024 was $5.8 million, or $1.01 diluted earnings per share, compared to $0.5 million, or $0.08 diluted earnings per share, for the quarter ended December 31, 2023. The $5.3 million increase in net income stemmed from a $6.5 million loss, $5.1 million net of tax, on the sale of securities which lowered non-interest income for the fourth quarter of 2023. This is coupled with a $1.5 million increase in net interest income to $16.4 million in the fourth quarter of 2024, compared to $14.9 million in the same quarter of 2023. These increases are offset by a $1.6 million increase in non-interest expense.
“We are pleased to post solid performance in Q4, attributable to the execution of our strategic initiatives and improvement in our net interest margin,” said Dan Santaniello, President and CEO. “Strong deposit and lending growth, along with positive balance sheet trends and credit metrics contributed to the achievement of year end asset balances of $2.6 billion and $20.8 million in net income. I would like to thank our bankers for their efforts and dedication in continuing to serve our clients, our shareholders and our communities well, positioning us for a strong 2025.”
Consolidated Year-To-Date Operating Results Overview
Net interest income was $61.9 million for the year ended December 31, 2024 compared to $62.1 million for the year ended December 31, 2023. The $0.2 million, or less than 1%, decline was the result of interest expense growing faster than interest income. On the asset side, the loan portfolio caused interest income growth by producing $12.6 million more in interest income primarily from an increase of 45 basis points in the fully-taxable equivalent (“FTE”) loan yields on $106.1 million in higher average balances. On the funding side, total interest expense increased by $13.4 million due to an increase in interest expense paid on deposits of $14.2 million from a 72 basis point higher rate paid on a $111.0 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $0.8 million for the twelve months ended December 31, 2024 compared to the same period in 2023.
The overall cost of interest-bearing liabilities was 2.60% for the twelve months ended December 31, 2024 compared to 1.93% for the twelve months ended December 31, 2023. The cost of funds increased 55 basis points to 1.99% for the twelve months ended December 31, 2024 from 1.44% for the same period of 2023. The FTE yield on interest-earning assets was 4.62% for the year ended December 31, 2024, an increase of 44 basis points from the 4.18% for the same period of 2023. The Company’s FTE (non-GAAP measurement) net interest spread was 2.02% for the twelve months ended December 31, 2024, a decrease of 23 basis points from the 2.25% recorded for the same period of 2023. FTE net interest margin decreased by 9 basis points to 2.72% for the twelve months ended December 31, 2024 from 2.81% for the same 2023 period due to the increase of 67 basis points in rates paid on interest-bearing liabilities growing at a faster pace than the increase of 44 basis points in yields on interest-earning assets.
For the year ended December 31, 2024, the provision for credit losses on loans was $1.3 million and the provision for credit losses on unfunded commitments was $0.1 million, compared to a $1.5 million provision for credit losses on loans and a $0.2 million net benefit for the provision for unfunded commitments for the year ended December 31, 2023. For the year ended December 31, 2024, the decrease in the provision for credit losses on loans compared to the prior year period was due to lower net charge-offs coupled with improved economic forecast assumptions. For the year ended December 31, 2024, the increase in the provision for credit losses on unfunded commitments compared to the prior period was due to growth in unfunded commitments, specifically in commercial construction commitments.
Total non-interest income for the year ended December 31, 2024 was $19.0 million, an increase of $7.6 million, or 67%, from $11.4 million for the year ended December 31, 2023. The primary driver of the large increase was a $6.5 million loss recognized on the sale of securities during 2023. The remaining $1.1 million increase resulted from increases of $0.6 million in additional trust fiduciary fees, $0.3 million in additional service charges on loans, $0.2 million more in debit card interchange fees and $0.1 million higher fees from financial services. Partially offsetting these increases, the Company received $0.3 million in recoveries from acquired charged-off loans during 2023. Additionally, the Company experienced a decrease of $0.2 million in fees from commercial loans with interest rate hedges compared to 2023.
Non-interest expenses increased to $55.5 million for the year ended December 31, 2024, an increase of $3.6 million, or 7%, from $51.9 million for the year ended December 31, 2023. Salaries and benefits expense increased $3.2 million due to an increase in employees and incentive-based compensation throughout the year ended December 31, 2024. There were additional increases throughout the period in professional fees of $0.6 million, and PA shares tax of $0.3 million. The increases were partially offset by $0.5 million less in fraud losses and $0.3 million less advertising and marketing expenses.
The provision for income taxes increased $1.0 million during 2024 compared to 2023 due to $3.6 million higher income before taxes.
Consolidated Fourth Quarter Operating Results Overview
Net interest income was $16.4 million for the fourth quarter of 2024, a 10% increase over the $14.9 million earned for the fourth quarter of 2023. The $1.5 million increase in net interest income resulted from the increase of $3.2 million in interest income primarily due to a $131.7 million increase in the average balance of interest-earning assets and a 32 basis point increase in the FTE yield. The loan portfolio had the biggest impact, producing a $3.2 million increase in interest income from $132.1 million in higher quarterly average balances and an increase of 37 basis points in the FTE loan yield. Slightly offsetting the higher interest income is a $1.7 million increase in interest expense due to a 24 basis point increase in the rates paid on interest-bearing liabilities coupled with a $152.4 million quarter-over-quarter increase in average interest-bearing deposit balances. The largest contributor to the increase in interest expense was due to growth in average balances and a 31 basis point increase in the rates paid on interest-bearing deposits.
The overall cost of interest-bearing liabilities was 2.60% for the fourth quarter of 2024, an increase of 24 basis points from the 2.36% paid for the fourth quarter of 2023. The cost of funds increased 21 basis points to 2.00% for the fourth quarter of 2024 from 1.79% for the fourth quarter of 2023. The Company’s FTE (non-GAAP measurement) net interest spread was 2.08% for the fourth quarter of 2024, up 8 basis points from the 2.00% recorded for the fourth quarter of 2023. FTE net interest margin increased by 12 basis points to 2.78% for the three months ended December 31, 2024 from 2.66% for the same 2023 period due to the increase of 32 basis points in the yields on interest-earning assets growing slightly faster than increase of 24 basis points in rates paid on interest-bearing liabilities.
For the three months ended December 31, 2024, the provision for credit losses on loans was $0.2 million partially offset by a $0.1 million net benefit in the provision for unfunded commitments, compared to a $0.1 million provision for credit losses on loans and a $0.1 million net benefit in the provision for credit losses on unfunded loan commitments for the three months ended December 31, 2023. For the three months ended December 31, 2024, the increase in the provision for credit losses on loans compared to the prior year period was due to higher net charge-offs compared to the same period of 2023. For the three months ended December 31, 2024, the $0.1 million net benefit for credit losses on unfunded commitments, which was unchanged from the prior year period, was due to a reduction in unfunded commitments as funds were advanced during the quarter.
Total non-interest income increased $6.8 million to $4.8 million in the fourth quarter of 2024 compared to the same period of 2023 primarily due to the $6.5 million loss recognized on the sale of securities during the fourth quarter of 2023. Additionally, the Company experienced an increase of $0.2 million in trust fiduciary activities revenue.
Non-interest expenses increased $1.6 million, or 12%, for the fourth quarter of 2024 to $14.4 million from $12.8 million for the same quarter of 2023. The increase in non-interest expenses was primarily due to $1.2 million increase in salaries and benefits expense from higher salaries related to new hires and banker incentives. There were also increases in professional services of $0.3 million, data center services of $0.1 million, and PA shares tax of $0.1 million.
The provision for income taxes increased $1.2 million during the fourth quarter of 2024 primarily due to the higher level of operating income compared to the fourth quarter of 2023.
Consolidated Balance Sheet & Asset Quality Overview
The Company’s total assets grew to $2.6 billion as of December 31, 2024, an increase of $81.5 million from December 31, 2023. The increase resulted from $114.3 million in growth in the loans and leases portfolio during the twelve months ended December 31, 2024. Asset growth was offset by a decline in cash and cash equivalents by $28.6 million and a decrease in the investment portfolio by $11.1 million. The decline in the investment portfolio was primarily due to $22.0 million in paydowns partially offset by a $15.4 million in purchases within the available-for-sale securities portfolio. As of December 31, 2024, the market value of held-to-maturity securities decreased by $2.6 million compared to December 31, 2023, bringing the portfolio down to a $31.2 million unrealized loss position.
During the same time period, total liabilities increased $67.0 million, or 3%. Deposit growth of $182.4 million was utilized to fund loan growth and pay-off of short-term borrowings as of December 31, 2024. The Company experienced an increase of $110.4 million in money market deposits and an increase of $125.9 million in time deposits due to promotional rates offered as a result of market competition. The growth in these products was partially offset by a decrease of $53.9 million in checking and savings account balances as of December 31, 2024. This decrease resulted primarily from declines experienced in average balances per checking and saving account, even though the number of accounts in each product grew throughout 2024. Also as of December 31, 2024, checking deposit balances remained at more than half of total deposits. As of December 31, 2024, the ratio of insured and collateralized deposits to total deposits was approximately 76%.
Shareholders’ equity increased $14.5 million, or 8%, to $204.0 million at December 31, 2024 from $189.5 million at December 31, 2023. The increase was caused by $11.9 million higher retained earnings from net income of $20.8 million plus a $0.9 million, after tax, improvement in accumulated other comprehensive income from lower net unrealized losses recorded on available-for-sale securities, partially offset by $8.9 million in cash dividends paid to shareholders. An additional $1.7 million was recorded from the issuance of common stock under the Company’s stock plans and stock-based compensation expense. At December 31, 2024, there were no credit losses on available-for-sale and held-to-maturity debt securities. Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Company remains well capitalized with Tier 1 capital at 9.22% of total average assets as of December 31, 2024. Total risk-based capital was 14.78% of risk-weighted assets and Tier 1 risk-based capital was 13.60% of risk-weighted assets as of December 31, 2024. Tangible book value per share was $31.98 at December 31, 2024 compared to $29.57 at December 31, 2023. Tangible common equity was 7.16% of total assets at December 31, 2024 compared to 6.79% at December 31, 2023.
Asset Quality
Total non-performing assets were $7.8 million, or 0.30% of total assets at December 31, 2024, compared to $3.3 million, or 0.13% of total assets at December 31, 2023. Past due and non-accrual loans to total loans were 0.71% at December 31, 2024 compared to 0.46% at December 31, 2023. Net charge-offs to average total loans were 0.03% at December 31, 2024 compared to 0.04% at December 31, 2023.
About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank
Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“Fidelity Bank”). Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company’s vision is to serve as the best bank for the community, which was accomplished by having provided over 5,960 hours of volunteer time and over $1.3 million in donations to non-profit organizations directly within the markets served throughout 2024. Fidelity Bank’s deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities. The Company’s non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company’s operating results and should not be read in isolation or relied upon as a substitute for GAAP measures. Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.
Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent (“FTE”), in order to calculate certain ratios within this document. This treatment allows a uniform comparison among yields on interest-earning assets. Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2024 and 2023.
Forward-looking statements
Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” and similar expressions are intended to identify such forward-looking statements.
The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:
| ■ | local, regional and national economic conditions and changes thereto; | |
| ■ | the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy; | |
| ■ | the risks of changes and volatility of interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities and interest rate protection agreements, as well as interest rate risks; | |
| ■ | securities markets and monetary fluctuations and volatility; | |
| ■ | disruption of credit and equity markets; | |
| ■ | impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules; | |
| ■ | governmental monetary and fiscal policies, as well as legislative and regulatory changes; | |
| ■ | effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions; | |
| ■ | the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; | |
| ■ | the impact of new or changes in existing laws and regulations, including laws and regulations concerning taxes, banking, securities and insurance and their application with which the Company and its subsidiaries must comply; |
| ■ | the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; | |
| ■ | the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet; | |
| ■ | the effects of economic conditions of any pandemic, epidemic or other health-related crisis such as COVID-19 and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers’ ability to repay loans; | |
| ■ | the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes; | |
| ■ | technological changes; | |
| ■ | the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses; | |
| ■ | acquisitions and integration of acquired businesses; | |
| ■ | the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities; | |
| ■ | acts of war or terrorism; and | |
| ■ | the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful. |
The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information please visit our investor relations web site located through www.bankatfidelity.com.
| FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands) |
||||||||
| At Period End: | December 31, 2024 | December 31, 2023 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 83,353 | $ | 111,949 | ||||
| Investment securities | 557,221 | 568,273 | ||||||
| Restricted investments in bank stock | 3,961 | 3,905 | ||||||
| Loans and leases | 1,800,856 | 1,686,555 | ||||||
| Allowance for credit losses on loans | (19,666 | ) | (18,806 | ) | ||||
| Premises and equipment, net | 35,914 | 34,232 | ||||||
| Life insurance cash surrender value | 58,069 | 54,572 | ||||||
| Goodwill and core deposit intangible | 20,504 | 20,812 | ||||||
| Other assets | 44,404 | 41,667 | ||||||
| Total assets | $ | 2,584,616 | $ | 2,503,159 | ||||
| Liabilities | ||||||||
| Non-interest-bearing deposits | $ | 533,935 | $ | 536,143 | ||||
| Interest-bearing deposits | 1,806,885 | 1,622,282 | ||||||
| Total deposits | 2,340,820 | 2,158,425 | ||||||
| Short-term borrowings | – | 117,000 | ||||||
| Secured borrowings | 6,266 | 7,372 | ||||||
| Other liabilities | 33,561 | 30,883 | ||||||
| Total liabilities | 2,380,647 | 2,313,680 | ||||||
| Shareholders’ equity | 203,969 | 189,479 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,584,616 | $ | 2,503,159 | ||||
| Average Year-To-Date Balances: | December 31, 2024 | December 31, 2023 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 55,773 | $ | 35,462 | ||||
| Investment securities | 557,537 | 597,359 | ||||||
| Restricted investments in bank stock | 3,960 | 4,212 | ||||||
| Loans and leases | 1,741,349 | 1,635,286 | ||||||
| Allowance for credit losses on loans | (19,391 | ) | (18,680 | ) | ||||
| Premises and equipment, net | 35,580 | 32,215 | ||||||
| Life insurance cash surrender value | 56,455 | 54,085 | ||||||
| Goodwill and core deposit intangible | 20,641 | 20,977 | ||||||
| Other assets | 41,755 | 44,180 | ||||||
| Total assets | $ | 2,493,659 | $ | 2,405,096 | ||||
| Liabilities | ||||||||
| Non-interest-bearing deposits | $ | 527,825 | $ | 558,962 | ||||
| Interest-bearing deposits | 1,697,529 | 1,586,527 | ||||||
| Total deposits | 2,225,354 | 2,145,489 | ||||||
| Short-term borrowings | 32,446 | 49,860 | ||||||
| Secured borrowings | 6,830 | 7,489 | ||||||
| Other liabilities | 32,471 | 29,881 | ||||||
| Total liabilities | 2,297,101 | 2,232,719 | ||||||
| Shareholders’ equity | 196,558 | 172,377 | ||||||
| Total liabilities and shareholders’ equity | $ | 2,493,659 | $ | 2,405,096 | ||||
| FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Statements of Income (dollars in thousands) |
||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2024 | Dec. 31, 2023 | |||||||||||||
| Interest income | ||||||||||||||||
| Loans and leases | $ | 24,584 | $ | 21,406 | $ | 93,269 | $ | 80,629 | ||||||||
| Securities and other | 3,475 | 3,434 | 13,753 | 13,206 | ||||||||||||
| Total interest income | 28,059 | 24,840 | 107,022 | 93,835 | ||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | (11,468 | ) | (9,232 | ) | (43,165 | ) | (28,945 | ) | ||||||||
| Borrowings and debt | (217 | ) | (707 | ) | (1,992 | ) | (2,843 | ) | ||||||||
| Total interest expense | (11,685 | ) | (9,939 | ) | (45,157 | ) | (31,788 | ) | ||||||||
| Net interest income | 16,374 | 14,901 | 61,865 | 62,047 | ||||||||||||
| Provision for credit losses on loans | (250 | ) | (111 | ) | (1,325 | ) | (1,491 | ) | ||||||||
| Net benefit (provision) for credit losses on unfunded loan commitments | 85 | 65 | (140 | ) | 165 | |||||||||||
| Non-interest income (loss) | 4,847 | (1,944 | ) | 19,013 | 11,405 | |||||||||||
| Non-interest expense | (14,395 | ) | (12,804 | ) | (55,541 | ) | (51,870 | ) | ||||||||
| Income before income taxes | 6,661 | 107 | 23,872 | 20,256 | ||||||||||||
| (Provision) benefit for income taxes | (826 | ) | 361 | (3,078 | ) | (2,046 | ) | |||||||||
| Net income | $ | 5,835 | $ | 468 | $ | 20,794 | $ | 18,210 | ||||||||
| Three Months Ended | ||||||||||||||||||||
| Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | ||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans and leases | $ | 24,584 | $ | 24,036 | $ | 22,516 | $ | 22,133 | $ | 21,406 | ||||||||||
| Securities and other | 3,475 | 3,263 | 3,523 | 3,492 | 3,434 | |||||||||||||||
| Total interest income | 28,059 | 27,299 | 26,039 | 25,625 | 24,840 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | (11,468 | ) | (11,297 | ) | (10,459 | ) | (9,941 | ) | (9,232 | ) | ||||||||||
| Borrowings and debt | (217 | ) | (571 | ) | (463 | ) | (741 | ) | (707 | ) | ||||||||||
| Total interest expense | (11,685 | ) | (11,868 | ) | (10,922 | ) | (10,682 | ) | (9,939 | ) | ||||||||||
| Net interest income | 16,374 | 15,431 | 15,117 | 14,943 | 14,901 | |||||||||||||||
| Provision for credit losses on loans | (250 | ) | (675 | ) | (275 | ) | (125 | ) | (111 | ) | ||||||||||
| Net benefit (provision) for credit losses on unfunded loan commitments | 85 | (135 | ) | (140 | ) | 50 | 65 | |||||||||||||
| Non-interest income (loss) | 4,847 | 4,979 | 4,615 | 4,572 | (1,944 | ) | ||||||||||||||
| Non-interest expense | (14,395 | ) | (13,840 | ) | (13,616 | ) | (13,689 | ) | (12,804 | ) | ||||||||||
| Income before income taxes | 6,661 | 5,760 | 5,701 | 5,751 | 107 | |||||||||||||||
| (Provision) benefit for income taxes | (826 | ) | (793 | ) | (766 | ) | (694 | ) | 361 | |||||||||||
| Net income | $ | 5,835 | $ | 4,967 | $ | 4,935 | $ | 5,057 | $ | 468 | ||||||||||
| FIDELITY D & D BANCORP, INC. Unaudited Condensed Consolidated Balance Sheets (dollars in thousands) |
||||||||||||||||||||
| At Period End: | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 83,353 | $ | 120,169 | $ | 78,085 | $ | 72,733 | $ | 111,949 | ||||||||||
| Investment securities | 557,221 | 559,819 | 552,495 | 559,016 | 568,273 | |||||||||||||||
| Restricted investments in bank stock | 3,961 | 3,944 | 3,968 | 3,959 | 3,905 | |||||||||||||||
| Loans and leases | 1,800,856 | 1,795,548 | 1,728,509 | 1,697,299 | 1,686,555 | |||||||||||||||
| Allowance for credit losses on loans | (19,666 | ) | (19,630 | ) | (18,975 | ) | (18,886 | ) | (18,806 | ) | ||||||||||
| Premises and equipment, net | 35,914 | 36,057 | 35,808 | 34,899 | 34,232 | |||||||||||||||
| Life insurance cash surrender value | 58,069 | 57,672 | 57,278 | 54,921 | 54,572 | |||||||||||||||
| Goodwill and core deposit intangible | 20,504 | 20,576 | 20,649 | 20,728 | 20,812 | |||||||||||||||
| Other assets | 44,404 | 41,778 | 42,828 | 44,227 | 41,667 | |||||||||||||||
| Total assets | $ | 2,584,616 | $ | 2,615,933 | $ | 2,500,645 | $ | 2,468,896 | $ | 2,503,159 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Non-interest-bearing deposits | $ | 533,935 | $ | 549,710 | $ | 527,572 | $ | 537,824 | $ | 536,143 | ||||||||||
| Interest-bearing deposits | 1,806,885 | 1,792,796 | 1,641,558 | 1,678,172 | 1,622,282 | |||||||||||||||
| Total deposits | 2,340,820 | 2,342,506 | 2,169,130 | 2,215,996 | 2,158,425 | |||||||||||||||
| Short-term borrowings | – | 25,000 | 98,120 | 25,000 | 117,000 | |||||||||||||||
| Secured borrowings | 6,266 | 6,323 | 7,237 | 7,299 | 7,372 | |||||||||||||||
| Other liabilities | 33,561 | 34,843 | 30,466 | 28,966 | 30,883 | |||||||||||||||
| Total liabilities | 2,380,647 | 2,408,672 | 2,304,953 | 2,277,261 | 2,313,680 | |||||||||||||||
| Shareholders’ equity | 203,969 | 207,261 | 195,692 | 191,635 | 189,479 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,584,616 | $ | 2,615,933 | $ | 2,500,645 | $ | 2,468,896 | $ | 2,503,159 | ||||||||||
| Average Quarterly Balances: | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 67,882 | $ | 41,991 | $ | 58,351 | $ | 54,887 | $ | 42,176 | ||||||||||
| Investment securities | 560,453 | 554,578 | 551,445 | 563,674 | 558,423 | |||||||||||||||
| Restricted investments in bank stock | 3,957 | 3,965 | 3,983 | 3,934 | 3,854 | |||||||||||||||
| Loans and leases | 1,797,023 | 1,763,254 | 1,707,598 | 1,696,669 | 1,664,905 | |||||||||||||||
| Allowance for credit losses on loans | (20,050 | ) | (19,323 | ) | (19,171 | ) | (19,013 | ) | (19,222 | ) | ||||||||||
| Premises and equipment, net | 36,065 | 36,219 | 35,433 | 34,591 | 33,629 | |||||||||||||||
| Life insurance cash surrender value | 57,919 | 57,525 | 55,552 | 54,796 | 54,449 | |||||||||||||||
| Goodwill and core deposit intangible | 20,529 | 20,602 | 20,677 | 20,759 | 20,844 | |||||||||||||||
| Other assets | 41,454 | 41,734 | 42,960 | 40,871 | 46,028 | |||||||||||||||
| Total assets | $ | 2,565,232 | $ | 2,500,545 | $ | 2,456,828 | $ | 2,451,168 | $ | 2,405,086 | ||||||||||
| Liabilities | ||||||||||||||||||||
| Non-interest-bearing deposits | $ | 538,506 | $ | 522,827 | $ | 530,048 | $ | 519,856 | $ | 533,663 | ||||||||||
| Interest-bearing deposits | 1,769,265 | 1,702,187 | 1,670,211 | 1,647,615 | 1,616,826 | |||||||||||||||
| Total deposits | 2,307,771 | 2,225,014 | 2,200,259 | 2,167,471 | 2,150,489 | |||||||||||||||
| Short-term borrowings | 10,326 | 37,220 | 28,477 | 53,952 | 48,490 | |||||||||||||||
| Secured borrowings | 6,297 | 6,429 | 7,269 | 7,335 | 7,412 | |||||||||||||||
| Other liabilities | 34,695 | 31,999 | 30,734 | 32,434 | 30,745 | |||||||||||||||
| Total liabilities | 2,359,089 | 2,300,662 | 2,266,739 | 2,261,192 | 2,237,136 | |||||||||||||||
| Shareholders’ equity | 206,143 | 199,883 | 190,089 | 189,976 | 167,950 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 2,565,232 | $ | 2,500,545 | $ | 2,456,828 | $ | 2,451,168 | $ | 2,405,086 | ||||||||||
| FIDELITY D & D BANCORP, INC. Selected Financial Ratios and Other Financial Data |
||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | ||||||||||||||||
| Selected returns and financial ratios | ||||||||||||||||||||
| Basic earnings per share | $ | 1.02 | $ | 0.87 | $ | 0.86 | $ | 0.88 | $ | 0.08 | ||||||||||
| Diluted earnings per share | $ | 1.01 | $ | 0.86 | $ | 0.86 | $ | 0.88 | $ | 0.08 | ||||||||||
| Dividends per share | $ | 0.40 | $ | 0.38 | $ | 0.38 | $ | 0.38 | $ | 0.38 | ||||||||||
| Yield on interest-earning assets (FTE)* | 4.68 | % | 4.68 | % | 4.58 | % | 4.52 | % | 4.36 | % | ||||||||||
| Cost of interest-bearing liabilities | 2.60 | % | 2.70 | % | 2.58 | % | 2.51 | % | 2.36 | % | ||||||||||
| Cost of funds | 2.00 | % | 2.08 | % | 1.96 | % | 1.93 | % | 1.79 | % | ||||||||||
| Net interest spread (FTE)* | 2.08 | % | 1.98 | % | 2.00 | % | 2.01 | % | 2.00 | % | ||||||||||
| Net interest margin (FTE)* | 2.78 | % | 2.70 | % | 2.71 | % | 2.69 | % | 2.66 | % | ||||||||||
| Return on average assets | 0.90 | % | 0.79 | % | 0.81 | % | 0.83 | % | 0.08 | % | ||||||||||
| Pre-provision net revenue to average assets* | 1.06 | % | 1.05 | % | 1.00 | % | 0.96 | % | 0.03 | % | ||||||||||
| Return on average equity | 11.26 | % | 9.89 | % | 10.44 | % | 10.71 | % | 1.10 | % | ||||||||||
| Return on average tangible equity* | 12.50 | % | 11.02 | % | 11.72 | % | 12.02 | % | 1.26 | % | ||||||||||
| Efficiency ratio (FTE)* | 65.48 | % | 65.33 | % | 66.47 | % | 67.56 | % | 63.74 | % | ||||||||||
| Expense ratio | 1.48 | % | 1.41 | % | 1.47 | % | 1.50 | % | 2.43 | % | ||||||||||
| Years ended | ||||||||
| Dec. 31, 2024 | Dec. 31, 2023 | |||||||
| Basic earnings per share | $ | 3.63 | $ | 3.21 | ||||
| Diluted earnings per share | $ | 3.60 | $ | 3.19 | ||||
| Dividends per share | $ | 1.54 | $ | 1.46 | ||||
| Yield on interest-earning assets (FTE)* | 4.62 | % | 4.18 | % | ||||
| Cost of interest-bearing liabilities | 2.60 | % | 1.93 | % | ||||
| Cost of funds | 1.99 | % | 1.44 | % | ||||
| Net interest spread (FTE)* | 2.02 | % | 2.25 | % | ||||
| Net interest margin (FTE)* | 2.72 | % | 2.81 | % | ||||
| Return on average assets | 0.83 | % | 0.76 | % | ||||
| Pre-provision net revenue to average assets* | 1.02 | % | 0.90 | % | ||||
| Return on average equity | 10.58 | % | 10.56 | % | ||||
| Return on average tangible equity* | 11.82 | % | 12.03 | % | ||||
| Efficiency ratio (FTE)* | 66.19 | % | 62.67 | % | ||||
| Expense ratio | 1.47 | % | 1.69 | % | ||||
| FIDELITY D & D BANCORP, INC. Selected Financial Ratios and Other Financial Data |
||||||||||||||||
| Non-GAAP Measures | Three Months Ended | Twelve Months Ended | ||||||||||||||
| (dollars in thousands except per share data) | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2024 | Dec. 31, 2023 | ||||||||||||
| Net income | $ | 5,835 | $ | 468 | $ | 20,794 | $ | 18,210 | ||||||||
| Loss (gain) on the sale of available-for-sale debt securities, net of income taxes | – | 5,109 | – | 5,110 | ||||||||||||
| Adjusted net income* | $ | 5,835 | $ | 5,577 | $ | 20,794 | $ | 23,320 | ||||||||
| Adjusted basic earnings per share* | $ | 1.02 | $ | 0.98 | $ | 3.63 | $ | 4.11 | ||||||||
| Adjusted diluted earnings per share* | $ | 1.01 | $ | 0.97 | $ | 3.60 | $ | 4.08 | ||||||||
| Adjusted return on average assets* | 0.90 | % | 0.92 | % | 0.83 | % | 0.97 | % | ||||||||
| Adjusted return on average tangible equity* | 12.51 | % | 15.04 | % | 11.82 | % | 15.40 | % | ||||||||
| Other financial data | At period end: | |||||||||||||||||||
| (dollars in thousands except per share data) | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |||||||||||||||
| Assets under management | $ | 921,994 | $ | 942,190 | $ | 906,861 | $ | 900,964 | $ | 876,287 | ||||||||||
| Book value per share | $ | 35.56 | $ | 36.13 | $ | 34.12 | $ | 33.41 | $ | 33.22 | ||||||||||
| Tangible book value per share* | $ | 31.98 | $ | 32.55 | $ | 30.52 | $ | 29.80 | $ | 29.57 | ||||||||||
| Equity to assets | 7.89 | % | 7.92 | % | 7.83 | % | 7.76 | % | 7.57 | % | ||||||||||
| Tangible common equity ratio* | 7.16 | % | 7.19 | % | 7.06 | % | 6.98 | % | 6.79 | % | ||||||||||
| Allowance for credit losses on loans to: | ||||||||||||||||||||
| Total loans | 1.09 | % | 1.09 | % | 1.10 | % | 1.11 | % | 1.12 | % | ||||||||||
| Non-accrual loans | 2.68x | 2.77x | 2.75x | 5.31x | 5.68x | |||||||||||||||
| Non-accrual loans to total loans | 0.41 | % | 0.39 | % | 0.40 | % | 0.21 | % | 0.20 | % | ||||||||||
| Non-performing assets to total assets | 0.30 | % | 0.29 | % | 0.28 | % | 0.15 | % | 0.13 | % | ||||||||||
| Net charge-offs to average total loans | 0.03 | % | 0.02 | % | 0.03 | % | 0.01 | % | 0.04 | % | ||||||||||
| Capital Adequacy Ratios | ||||||||||||||||||||
| Total risk-based capital ratio | 14.78 | % | 14.56 | % | 14.69 | % | 14.68 | % | 14.67 | % | ||||||||||
| Common equity tier 1 risk-based capital ratio | 13.60 | % | 13.38 | % | 13.52 | % | 13.47 | % | 13.42 | % | ||||||||||
| Tier 1 risk-based capital ratio | 13.60 | % | 13.38 | % | 13.52 | % | 13.47 | % | 13.42 | % | ||||||||||
| Leverage ratio | 9.22 | % | 9.30 | % | 9.30 | % | 9.15 | % | 9.15 | % | ||||||||||
* Non-GAAP Financial Measures – see reconciliations below
| FIDELITY D & D BANCORP, INC. Reconciliations of Non-GAAP Financial Measures to GAAP |
||||||||||||||||||||
| Reconciliations of Non-GAAP Measures to GAAP | Three Months Ended | |||||||||||||||||||
| (dollars in thousands) | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |||||||||||||||
| FTE net interest income (non-GAAP) | ||||||||||||||||||||
| Interest income (GAAP) | $ | 28,059 | $ | 27,299 | $ | 26,039 | $ | 25,625 | $ | 24,840 | ||||||||||
| Adjustment to FTE | 764 | 775 | 751 | 747 | 664 | |||||||||||||||
| Interest income adjusted to FTE (non-GAAP) | 28,823 | 28,074 | 26,790 | 26,372 | 25,504 | |||||||||||||||
| Interest expense (GAAP) | 11,685 | 11,868 | 10,922 | 10,682 | 9,939 | |||||||||||||||
| Net interest income adjusted to FTE (non-GAAP) | $ | 17,138 | 16,206 | $ | 15,868 | 15,690 | 15,565 | |||||||||||||
| Efficiency Ratio (non-GAAP) | ||||||||||||||||||||
| Non-interest expenses (GAAP) | $ | 14,395 | $ | 13,840 | $ | 13,616 | $ | 13,689 | $ | 12,804 | ||||||||||
| Net interest income (GAAP) | 16,374 | 15,431 | 15,117 | 14,943 | 14,901 | |||||||||||||||
| Plus: taxable equivalent adjustment | 764 | 775 | 751 | 747 | 664 | |||||||||||||||
| Non-interest income (GAAP) | 4,847 | 4,979 | 4,615 | 4,572 | (1,944 | ) | ||||||||||||||
| Less: (Loss) gain on sales of securities | – | – | – | – | (6,467 | ) | ||||||||||||||
| Net interest income (FTE) plus adjusted non-interest income (non-GAAP) | $ | 21,985 | $ | 21,185 | $ | 20,483 | $ | 20,262 | $ | 20,088 | ||||||||||
| Efficiency ratio (non-GAAP) (1) | 65.47 | % | 65.33 | % | 66.48 | % | 67.56 | % | 63.74 | % | ||||||||||
| (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income. | ||||||||||||||||||||
| Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP) | ||||||||||||||||||||
| Total assets (GAAP) | $ | 2,584,616 | $ | 2,615,933 | $ | 2,500,645 | $ | 2,468,896 | $ | 2,503,159 | ||||||||||
| Less: Intangible assets, primarily goodwill | (20,504 | ) | (20,576 | ) | (20,649 | ) | (20,728 | ) | (20,812 | ) | ||||||||||
| Tangible assets | 2,564,112 | 2,595,357 | 2,479,996 | 2,448,168 | 2,482,347 | |||||||||||||||
| Total shareholders’ equity (GAAP) | 203,969 | 207,261 | 195,692 | 191,635 | 189,479 | |||||||||||||||
| Less: Intangible assets, primarily goodwill | (20,504 | ) | (20,576 | ) | (20,649 | ) | (20,728 | ) | (20,812 | ) | ||||||||||
| Tangible common equity | 183,465 | 186,685 | 175,043 | 170,907 | 168,667 | |||||||||||||||
| Common shares outstanding, end of period | 5,736,252 | 5,736,025 | 5,735,728 | 5,735,732 | 5,703,636 | |||||||||||||||
| Tangible Common Book Value per Share | $ | 31.98 | $ | 32.55 | $ | 30.52 | $ | 29.80 | $ | 29.57 | ||||||||||
| Tangible Common Equity Ratio | 7.16 | % | 7.19 | % | 7.06 | % | 6.98 | % | 6.79 | % | ||||||||||
| Pre-Provision Net Revenue to Average Assets | ||||||||||||||||||||
| Income before taxes (GAAP) | $ | 6,661 | $ | 5,760 | $ | 5,701 | $ | 5,751 | $ | 107 | ||||||||||
| Plus: Provision for credit losses | 165 | 810 | 415 | 75 | 47 | |||||||||||||||
| Total pre-provision net revenue (non-GAAP) | 6,826 | 6,570 | 6,116 | 5,826 | 154 | |||||||||||||||
| Total (annualized) (non-GAAP) | $ | 27,157 | $ | 26,423 | $ | 24,600 | $ | 23,432 | $ | 609 | ||||||||||
| Average assets | $ | 2,565,232 | $ | 2,500,545 | $ | 2,456,828 | $ | 2,451,168 | $ | 2,405,086 | ||||||||||
| Pre-Provision Net Revenue to Average Assets (non-GAAP) | 1.06 | % | 1.05 | % | 1.00 | % | 0.96 | % | 0.03 | % | ||||||||||
| FIDELITY D & D BANCORP, INC. Reconciliations of Non-GAAP Financial Measures to GAAP |
||||||||
| Reconciliations of Non-GAAP Measures to GAAP | Years ended | |||||||
| (dollars in thousands) | Dec. 31, 2024 | Dec. 31, 2023 | ||||||
| FTE net interest income (non-GAAP) | ||||||||
| Interest income (GAAP) | $ | 107,022 | $ | 93,835 | ||||
| Adjustment to FTE | 3,036 | 2,850 | ||||||
| Interest income adjusted to FTE (non-GAAP) | 110,058 | 96,685 | ||||||
| Interest expense (GAAP) | 45,157 | 31,788 | ||||||
| Net interest income adjusted to FTE (non-GAAP) | $ | 64,901 | 64,897 | |||||
| Efficiency Ratio (non-GAAP) | ||||||||
| Non-interest expenses (GAAP) | $ | 55,541 | $ | 51,870 | ||||
| Net interest income (GAAP) | 61,865 | 62,047 | ||||||
| Plus: taxable equivalent adjustment | 3,036 | 2,850 | ||||||
| Non-interest income (GAAP) | 19,013 | 11,405 | ||||||
| Less: (Loss) gain on sales of securities | – | (6,468 | ) | |||||
| Net interest income (FTE) plus non-interest income (non-GAAP) | $ | 83,914 | $ | 82,770 | ||||
| Efficiency ratio (non-GAAP) (1) | 66.19 | % | 62.67 | % | ||||
| (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income. | ||||||||
| Pre-Provision Net Revenue to Average Assets | ||||||||
| Income before taxes (GAAP) | $ | 23,873 | $ | 20,256 | ||||
| Plus: Provision for credit losses | 1,465 | 1,327 | ||||||
| Total pre-provision net revenue (non-GAAP) | $ | 25,338 | $ | 21,583 | ||||
| Average assets | $ | 2,493,659 | $ | 2,405,096 | ||||
| Pre-Provision Net Revenue to Average Assets (non-GAAP) | 1.02 | % | 0.90 | % | ||||
| Contacts: | |
| Daniel J. Santaniello | Salvatore R. DeFrancesco, Jr. |
| President and Chief Executive Officer | Treasurer and Chief Financial Officer |
| 570-504-8035 | 570-504-8000 |
Source: Scotland – Highland Council
A series of engagement events have been set up so members of the public can take part in the current consultation process on the proposed Visitor Levy Scheme for Highland.
The events come in a number of formats, including face-to-face informal drop-in sessions held in libraries and other civic spaces, to make it as convenient for people as possible to get involved and have their say.
The Highland Council Convener, Councillor Bill Lobban said: “We are getting feedback from businesses in the tourism sector but we also need to hear the voices of individual members of the public. It is very important that the consultation is as encompassing as possible and all voices are heard.
“We have set up these sessions in different formats at different times of day, to make it as easy as possible for people to have their say. We have also put together helpful FAQs on our website which explain aspects of the the proposal and are a good starting point for anyone wanting to find out more before filling in the on-line consultation document.”
The Public Library Community Drop-in Events will be an informal in-person drop-in opportunity to chat with Council staff on the proposed Visitor Levy Scheme and ask questions about the proposal or the consultation process. Public access computers will also be available on-site for members of the public to fill in the online consultation document, if required.
The Community Drop-in Events are as follows:
They too will provide an informal in-person drop-in opportunity for members of the public to chat with Council staff on the proposed Visitor Levy Scheme and ask questions about the proposal or the consultation process.
As well as these face-to-face events, two Community Webinars will take place. These will all begin with a formal online presentation from Council staff on the proposed Visitor Levy Scheme followed by the opportunity to ask questions about the proposal or the consultation process.
The Council is asking people to regularly check the Visitor Levy website as further details and additional venues will be confirmed and registration links to online events will be published.In addition to these public engagement events, the Council will be hosting a Webinar specifically for Community Council members and will be taking part in a series of Chambers of Commerce Business Events.
Councillor Lobban added: “We want the consultation to be as inclusive as possible, ensuring that it fairly and accurately captures opinion and feedback from across all communities. This is why I encourage people to take up this opportunity to drop-in and have an informal chat with staff on the proposals and then pass on their views via the on-line consultation.”
The consultation runs up until 31 March 2025. In addition to the online survey, there is a phoneline to request a paper copy of the consultation 01349 781020 and a dedicated email address to answer any queries and provide support: visitorlevyconsultation@highland.gov.uk
Source: United Kingdom – Government Statements
Director disqualified for Bounce Back Loan abuse
The former boss of a west London bakery who overstated his company’s turnover to secure a maximum-value Covid loan has been banned from acting as a director for 10 years.
Azizullrahman Akbari, 60, obtained a £50,000 Bounce Back Loan just weeks into the pandemic, claiming the turnover for his New Watan Bakery Limited company was more than £200,000.
In reality, the company, which ran the Watan Bakery on South Road in Southall, never had such a high turnover.
Elizabeth Pigney, Chief Investigator at the Insolvency Service, said:
Azizullrahman Akbari exaggerated his company’s turnover to secure a £50,000 Bounce Back Loan, the most businesses were entitled to under the rules of the scheme.
From our analysis of the accounts, the company did not deserve anywhere near this amount.
Tackling Bounce Back Loan misconduct remains a key priority for the Insolvency Service and we will continue to take action against directors like Akbari who made false declarations when applying for financial support from the government.
New Watan Bakery began trading in June 2016, with Akbari as its sole director.
Akbari, of The Broadway, Southall, applied for a Bounce Back Loan in May 2020, declaring his company had a turnover of £214,010.
Businesses established before the start of January 2019 could apply for a Bounce Back Loan of up to a quarter of their annual turnover, with a maximum amount of £50,000.
Insolvency Service analysis of the company’s accounts revealed a turnover of £62,584 for the period up until the end of June 2019.
For the period ending June 2020, the turnover was smaller at £52,370.
New Watan Bakery entered liquidation in July 2023 owing more than £53,000.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Akbari, and his ban started on Wednesday 29 January.
The undertaking prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
A separate company now runs the bakery. Akbari is not listed as a director of this company.
Published 29 January 2025
Source: GlobeNewswire (MIL-OSI)
Aktia Bank Plc
Press release
29 January 2025 at 1.30 p.m.
Aktia’s Financial Statement Release 2024 will be published on Wednesday 12 February 2025 at 8.00 a.m.
Aktia’s Financial Statement Release 2024 will be published on Wednesday 12 February 2025 at 8.00 a.m. (EET). The Financial Statement Release is available at Aktia’s website www.aktia.com after the publication.
Briefing for analysts, investors and media
Aktia’s briefing for analysts, investors and media will be held in English at Little Finlandia’s Oksa-hall (Karamzininranta 4, Helsinki) on Wednesday 12 February 2025 at 10.30 a.m. Aktia’s CEO Aleksi Lehtonen and CFO Sakari Järvelä will be presenting the results. Attendees are kindly asked to register before 5 February 2025 by email at the address ir@aktia.fi.
The briefing can be seen live as a webcast or as a recording after the briefing at https://aktia.events.inderes.com/q4-report-2024. Questions can be asked in writing during the live webcast.
The presentation material in English is available at Aktia’s website www.aktia.com before the briefing.
Aktia Bank Plc
Further information:
Oscar Taimitarha, Director, Investor Relations, tel. +358 40 562 2315
Distribution:
Nasdaq Helsinki Ltd
Mass media
www.aktia.com
Aktia är en finländsk kapitalförvaltare, bank och livförsäkrare som har skapat välstånd och välfärd generation efter generation redan under 200 års tid. Vi tillhandahåller våra kunder digitala tjänster i ett flertal kanaler och ger personlig service på våra verksamhetsställen i huvudstadsregionen samt i Åbo-, Tammerfors-, Vasa- och Uleåborgsregionerna. Vår belönade kapitalförvaltnings fonder säljs även internationellt. Vi sysselsätter ca 850 personer på olika håll i Finland. Aktias förvaltade kundtillgångar (AuM) uppgick 30.9.2024 till 14,3 miljarder euro och balansomslutningen till 12,0 miljarder euro. Aktias aktie noteras på Nasdaq Helsinki Oy (AKTIA). aktia.com.
Source: United Kingdom UK Parliament (video statements)
MPs on the Health and Social Care Committee question the senior leadership of NHS England on whether the NHS is well placed to implement the Government’s three healthcare shifts. Examining the relationship between NHS England and ICSs (integrated care systems), the committee consider how the current system can support the Government’s ambition to shift care from hospital to community.
MPs pose questions on the Budget’s funding allocations for the NHS and on productivity within the NHS, as well as what the panel hopes to see from the 10 Year Health Plan. The session is an opportunity for the Committee to explore the NHS’ approach to tackling waiting lists and winter pressures.
#nhs #nhsengland #selectcommittee #ukpolitics