On Thursday, following the release of IOOF’s financial year 2021 results, chief executive Renato Mota said the “early signs are quite positive” in relation to the MLC acquisition.
“It provides some significant opportunities from scale and a real competitive advantage in terms of capability and our ability to drive down the cost to serve,” Mr Mota said.
“As an integrated business, what we’ve built is a really mature approach to supporting change.
“Whilst we’re going through a lot of change at the moment, it does give us confidence that we’ll be able to meet our commitments with respect to simplification.”
IOOF reported MLC AUM of $175 billion and a synergy run rate of $12 million p.a. achieved by 30 June.
The company believes it is “on track” to deliver an additional synergy run rate of $80-100 million by the end of the FY22.
The acquisition of MLC, as well as ANZ P&I last year, now sees IOOF boast 2.2 million clients, with 1,975 financial advisers onboard.
Mr Mota said IOOF has a “high degree of confidence” to meet net flow positive goals in relation to its self-employed advice models.
“There is a continued opportunity to firstly extend that logic and extend that desire across the MLC advice businesses,” he said.
“But importantly also, to challenge ourselves to solve the problem of the unaddressed advice market.”
Mr Mota’s comments come after IOOF confirmed the departure of 135 advisers as it gears up for its new transformation program, Advice 2.0.
IOOF net outflow. MLC net outflow. ANZ net outflow. How does this strategy makes sense. Building a ghetto is not going get the tourists!
Mutton dressed up as lamb! The mkt isn’t that silly. It’s worked out the vertical integration model is dead! IOOF execs trying to sell a broken model! They’ve always been an acquisition player buying legacy systems, putting band aids on them and suggesting everything is OK, whilst ignoring the structural decline of its model! Mkt movement can hide this in the short term, but when mkts correct and as the adviser exodus continues the fall in earnings numbers will be massive! It’s a worry?
The market is not so positive – IFL stock sold off heavily yesterday on their profit result
Well, yes, they made a big loss. Operating profit turned into a loss through writedowns.
The market is forward looking – it is pricing in the company’s future prospects and not liking what it’s seeing. Yesterday’s result is already old news.
People said the same thing when IFL was trading @2.90