Perpetual has reported a net profit after tax of $101.2 million and declared a fully franked final dividend of $0.97 per share.
The firm’s statutory net profit after tax surged 39 per cent on the prior corresponding period, while its underlying profit after tax added 21 per cent to $148.2 million.
FY22 revenue was up 20 per cent to $767.7 million, supported by higher average assets under management (AUM) due to higher equity markets, a full 12 months’ contribution from Barrow Hanley in Perpetual Asset Management International (PAMI) and continued organic and inorganic growth across both Perpetual Corporate Trust (PCT) and Perpetual Private (PP).
“Perpetual has delivered a robust financial result in FY22, driven by strong earnings growth across all four of our business units,” said Perpetual chief executive officer and managing director, Rob Adams.
“This performance reflects the continued growth of our global asset management business, including the first full 12-month contribution from Barrow Hanley, and was supported by higher average equity markets over the year,” Mr Adams explained.
PAMI AUM were $69.1 billion as at 30 June 2022, a decrease of $4.5 billion on FY21, while the Australian segment closed the year with AUM at $21.3 billion, down $3.4 billion on the year.
The advisory division, Perpetual Private, delivered revenue of $211.2 million, an increase of $27.5 million or 15 per cent higher than FY21, and underlying profit before tax of $44.3 million, 26 per cent higher than FY21.
PP’s funds under advice (FUA) at the end of FY22 was $17.4 billion, or 2 per cent higher than FY21.
“PP saw growth over the period across all segments supplemented by our acquisition of Jacaranda Financial Planning, which is generating new client interest following the expansion of its seminars on the Australian eastern seaboard,” Mr Adams said.
“The result for the year highlights the strength of the PP business as one of Australia’s pre-eminent high net worth, wealth management firms. We will remain fully focused on addressing the gap in the market that exists for quality advice and wealth management services to continue to grow our FUA.”
Meanwhile, corporate trustee, custodian and digital solution provider, PCT, reported underlying net profit growth of 14 per cent, with FUAs expanding 18 per cent from the prior corresponding period to $1.092 trillion.
Looking forward, Mr Adams said that while the macroeconomic and geopolitical conditions pose challenges for the global financial services industry, “the outlook for Perpetual remains positive”.
“Perpetual enters the new financial year with positive momentum across each division. The proposed acquisition of Pendal is a significant milestone in Perpetual’s long history, bringing together two businesses with premium brands and aligned multi-boutique approaches, to create a leading global asset manager significantly leveraging the build-out of our global asset management business over the last two years,” Mr Adams said.
“The completion of the Pendal acquisition will deliver significant scale and global reach, diversified independent brands promoting investment autonomy at all times and delivering a broad array of high-quality investment capabilities, a global leadership position in ESG investing and a substantial, high-quality global distribution team, all complemented by our industry-leading wealth management and trustee businesses,” he concluded.
