Capital ratios remain strong with total risk-based capital ratio at 16.25% and tangible common equity ratio at 9.95%.
Net income and EPS grew 18% quarter-over-quarter excluding a $8.5 million loss on securities sales and related tax impact.
Net interest income increased to $25.9 million, driven by higher average earning assets and a 7 basis point increase in net interest margin.
Net interest margin expansion was due to a 1 basis point decrease in cost of deposits and a 6 basis point increase in average yield on earning assets.
Noninterest income was negative due to the securities portfolio loss, but other noninterest income areas were consistent with prior quarter.
No provision for credit losses was required due to stable loan portfolio and high reserves; allowance for credit losses remained at 1.44% of total loans.
Pretax pre-provision net income increased 15% compared to prior quarter and 85% compared to prior year-to-date.
Repurchased $2.2 million of shares during the quarter within a limited window.
Total deposits declined in Q2 due to normal client activity but have grown year-to-date; more than 70% of Q2 deposit outflows recouped in July.
AFFO per share was $1.28 for the second quarter, representing a 9.4% increase year-over-year driven by accretive investment activity and sector-leading rent growth.
Comprehensive same-store rent growth was 4% year-over-year, reflecting rent collections, recovery of past due rent, leasing activity, and vacancies.
Contractual same-store rent growth for Q2 was 2.3% year-over-year, with CPI-linked escalations averaging 2.6% and fixed rent increases averaging 2.1%.
Dividend declared at $0.90 per share for Q2, a 3.4% increase over prior year, with a payout ratio of approximately 73% of AFFO per share.
G&A expenses are expected between $99 million and $102 million for the full year, with non-reimbursed property expenses between $50 million and $54 million.
Key leverage metrics remain within target ranges: debt to gross assets at 43.2% and net debt to adjusted EBITDA at 5.8x.
Liquidity at quarter end was about $1.7 billion, with $660 million drawn on the revolver, partially paid down after a $400 million bond issuance.
Nonoperating income is expected around $20 million for the full year, mainly from dividends on equity stakes.
Operating property NOI for 2025 is estimated between $55 million and $60 million, including hotel and student housing properties.
Tax expense on an AFFO basis is expected between $42 million and $46 million, primarily foreign taxes on European assets.
Adjusted book value per share ex AOCI and with AB ownership at market value was $40.89, up 11% year-over-year.
Adjusted non-GAAP operating EPS was $1.41, down 8% compared to the prior year, primarily due to elevated individual life mortality claims.
AllianceBernstein (AB) reported net outflows of $6.7 billion in Q2 but returned to net inflows in June; private markets AUM grew 20% year-over-year to $77 billion.
Assets under management and administration reached a record $1.1 trillion, up 5% year-to-date.
GAAP net loss was $349 million, impacted by notable items including a $74 million after-tax negative item in Protection Solutions.
Non-GAAP operating earnings were $352 million or $1.10 per share, down 23% year-over-year on a per share basis.
Wealth Management earnings increased 16% year-over-year with $2 billion of advisory net inflows and a 12% trailing 12-month organic growth rate.
Adjusted EBITDA margin expanded by 70 basis points relative to Q2 2024, reaching 54.2% for the quarter and increasing 83 basis points compared to 2024 full year margins.
Adjusted expenses increased 24% on a reported basis, driven by investments in digital assets, consulting, client relationship development, and headcount growth.
Credit revenues grew strongly, led by global corporate bonds, munis, and credit derivatives, despite some retail corporate credit revenues declining 17% year-over-year.
Equities posted record results with 50% year-over-year growth, led by global ETF and equity derivatives businesses.
Free cash flow reached approximately $952 million for the trailing 12 months, with $1.6 billion in cash and cash equivalents at quarter-end.
International business revenues grew 41% year-over-year, driven by strategic initiatives in emerging markets and APAC.
Market data revenues increased due to growth in proprietary data products.
Q2 revenues grew 26.7% year-over-year on a reported basis and 24.7% on a constant currency basis.
Rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages.
The Board declared a quarterly dividend of $0.12 per share, up 20% year-over-year.
Tradeweb set a new quarterly revenue record in Q2 2025, surpassing the Q1 2025 record, with revenues exceeding $1 billion in the first half of the year.
Variable revenue increased by 30%, total trading revenues increased by 28%, and fixed revenues related to four major asset classes increased 25% on a reported basis.
Dafinchi