Two Baltimore-based financial service companies saw their profits soar in the fourth quarter of 1991 and the entire year, thanks to the strong investment market.
T. Rowe Price Associates Inc.'s quarterly profits more than doubled to $8.4 million, or 56 cents a share, on revenues of $55.9 million. that compares to profits of $4 million, or 27 cents a share, on revenues of $40 million during the same period in 1990.
For the year, the company's profits increased 45 percent to $30.4 million, or $2.04 a share, on revenues of $205 million. In 1990, company profits were $20.9 million, or $1.42 a share, in 1990.
Company President George J. Collins attributed the earnings to record levels of managed assets. Assets in mutual funds rose to $21.5 billion by the end of the year, up $4.1 billion from the previous year. Total assets under management increased to $35.6 billion from $29.4 billion at the end of 1990.
Alex. Brown Inc. saw fourth quarter earnings quadruple, and reported record high revenues and earnings for the year.
For the quarter, the company reported profits of $19.1 million, or $1.21 a share, on revenues of $126.1 million. In the last quarter of 1990, earnings were $3.8 million, or 26 cents, on revenues of $67.9 million.
For the full year, the securities firm had record earnings of $52 million, or $3.36 a share, on revenues of $410.5 million. In 1990, the firm earned $7.8 million, or 50 cents a share, on revenues of $271.7 million.
"The firm clearly benefited from the year's extraordinary market strength which prompted sharp increases in trading volume on the major exchanges and strong demand for public offerings," said A.B. Krongard, chief executive officer.
Alex. Brown's fourth quarter was even better than some analysts had predicted. Richard L. Hanley, head of Richard Hanley Associates in New York, said he expected the company to report earnings of between 75 cents and $1 a share. He said the company benefited from a strong market in companies making initial public offerings. Alex. Brown is the leading underwriter in initial public offerings.