Question · Q4 2025
Natalie Null from KBW asked about the sustainability of the Private Banking segment's margin, which stepped up sequentially to the high teens. She questioned if this margin level could be maintained with stronger professional services sales or if a return to mid-teens was more likely, with upside potential from professional services. Null also requested additional color on the two significant mandate wins in the Private Banking segment.
Answer
CEO Ryan Hicke indicated that Private Banking margins have shown a steady increase over the past eight quarters and are expected to remain in a similar range, with professional services typically having higher margins than platform services. Sanjay Sharma, President of Private Banking, explained that the two large mandate wins resulted from 18+ months of advisory engagement, defining transformation agendas, and combining SEI's core platform, enterprise capabilities, and professional services. Sean Denham, CFO and COO, added that one of these wins was SEI's second Software-as-a-Service client.
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