T. Rowe Price Group saw its quarterly income fall for the first time in two years but the Baltimore money manager reported record revenue and profit for the year.
The company said Friday that net income for the three months ending Dec. 31 was $188.4 million, or 73 cents per share, compared with $191.6 million, or 72 cents per share. Earnings were impacted by higher taxes and expenses in the recent fourth quarter, the company said.
It was the first time Price reported a quarterly decline since the third quarter of 2009.
For the year, the company's net income was $773.2 million, or $2.92 per share, compared with $672.2 million, or $2.53 per share, in 2010.
Revenues last year were $2.7 billion, up from $2.4 billion a year earlier.
Despite market volatility last year, clients poured in $14.1 billion in new money, including the company's target-date funds, which become more conservative as investors age.
At the end of the year, the company had $489.5 billion in assets under management, gaining $7.5 billion from a year ago.
"When you continue to perform for the clients, they continue to invest with us," James A.C. Kennedy, Price's chief executive officer and president, said in an interview.
Operating costs rose nearly 4 percent to $378 million in the fourth quarter, compared with $364.7 million in the corresponding period last year. The increase was largely due to increases in distribution and servicing costs and compensation.
Over the past year, Price added 203 employees, including more than 100 in the Baltimore region, bringing its total work force to 5,255.
The company now has about 100 open positions, Kennedy said.