Fidelity Investments, one of the nation’s largest wealth managers and retirement plan providers, announced a successful year of growth in 2023. Alongside this accomplishment, the company made changes to its executive team, appointing a new chief financial officer.

In its annual report, Fidelity revealed a 12% increase in revenue, reaching $28.2 billion compared to the previous year. Operating income also saw a 6% rise to $8.5 billion. The company’s assets under administration surged by 23% to $12.6 trillion, driven by the strength of equity markets. Additionally, Fidelity reported net asset flows of $647.2 billion in 2023, representing a significant 38% increase from 2022.

CEO Abigail Johnson acknowledged the instrumental role of digital investments and the robust stock market in driving Fidelity’s growth last year. In her chairman’s letter, she highlighted that 10.3 million customers now maintain relationships with multiple Fidelity businesses, up from 9.2 million in 2022.

Johnson attributes this success to the company’s focus on enhancing its technology infrastructure and providing seamless, secure digital experiences for customers across various Fidelity platforms. She emphasized that these improvements have facilitated easier navigation of Fidelity’s diverse products and services, including workplace investing, retail brokerage, wealth management, asset management, clearing and custody, and digital assets.

Abigail Johnson assumed leadership of Fidelity in 2014, succeeding her father, Ned Johnson.

Company Financial Summary

  • Revenue: $28.2 billion (+12% YoY)
  • Operating Income: $8.5 billion (+6% YoY)
  • Assets Under Administration: $12.6 trillion (+23% YoY)
  • Net Asset Flows: $647.2 billion (+38% YoY)

Digital Investments Boost Customer Engagement

Fidelity’s technological advancements and commitment to delivering exceptional digital experiences have resulted in increased engagement from customers. In 2023, approximately 43% of new retail accounts were opened by investors aged 18-35. This demonstrates Fidelity’s ability to cater to the needs and preferences of younger generations.

Looking Ahead

With a strong performance in 2023, Fidelity Investments is well-positioned to continue its growth trajectory. As technology continues to play a crucial role in the financial industry, the company’s focus on digital innovation will likely drive further success in the years to come.

Fidelity’s Annual Update and Leadership Changes

Fidelity, a privately held company, recently released its annual update, giving insights into its financial performance and allowing for a comparison with publicly traded competitors like Charles Schwab. While Schwab reported a 9% decline in revenue to $18.9 billion and a 22% drop in adjusted net income to $6.16 billion for 2023, Fidelity’s performance stands in stark contrast.

The challenging 2023 for Schwab can be attributed to the higher interest rate environment and deposit outflows, which exerted pressure on its earnings. In terms of financials, Fidelity has fared far better, demonstrating its resilience in the industry.

Collaborating with the Wall Street Journal, a Fidelity spokesperson confirmed the recent leadership changes within the company. It is a part of Fidelity’s tradition to assign new roles to talented leaders, ensuring fresh perspectives permeate different areas of the business.

Chief Financial Officer Maggie Serravalli has now assumed the position of chief administrative officer, bringing her expertise to drive administrative functions within the company. Kevin Barry, who formerly presided over Fidelity’s Workplace Investing business, takes over as CFO, leveraging his experience for financial management. Sharon Brovelli succeeds Barry and becomes the new head of the workplace business.

These leadership changes signify Fidelity’s commitment to adaptability and growth, ensuring a strong leadership team is in place to navigate future challenges and capitalize on opportunities.

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