Perpetual profit leaps 113%, adviser division delivers positive inflows

Perpetual’s net profit after tax surged 113 per cent on the prior corresponding period, while its underlying profit after tax added 54 per cent to $79.1 million

In an ASX listing on Thursday, Perpetual confirmed operating revenue of $384.9 million, with growth of 37 per cent primarily driven by the full contribution of Barrow Hanley Global Investors, strong relative investment performance, higher average equity markets and continued growth in both Perpetual Corporate Trust and Perpetual Private (PP).

“We are delivering solid earnings growth across our business, with all four of our operating divisions demonstrating positive momentum. Pleasingly, we are making substantial progress in executing the group’s strategic priorities with both organic and inorganic investments supporting solid growth in underlying profit and improved returns to shareholders,” Perpetual CEO and managing director, Mr Rob Adams, said.

“Our two asset management divisions, Perpetual Asset Management International (PAMI) and Perpetual Asset Management Australia (PAMA) have continued to perform well, maintaining their disciplined investment approaches, positioning us extremely well to benefit from a rotation to value across global equity markets.”

PAMI assets under management (AUM) were $77.2 billion as at 31 December 2021, up from $66.5 billion on the prior corresponding period, while the Australian segment closed the half with AUM growth of 42 per cent to $25.6 billion.

The advisory division, Perpetual Private, saw its underlying profit after tax expanded by 56 per cent to $23.9 million, driven by positive net flows, strong relative investment performance and higher market related revenue, supported by the continuing success of the adviser growth strategy and the acquisition of Jacaranda Financial Planning.

“Our acquisition of Jacaranda materially bolsters our adviser growth strategy and increases the trajectory of our FUA toward the $20 billion milestone. Its integration is progressing to plan, enabling the business to benefit from PP’s existing infrastructure which will support future growth,” said Mr Adams.

“When combined with positive flows from our existing adviser base, it has been another strong quarter. Our adviser growth strategy has delivered consistent positive inflows since its inception, now exceeding $1 billion.”

Funds under advice as at 31 December 2021 were $19 billion, up from $15.5 billion at the end of the prior corresponding period.

Meanwhile, corporate trustee, custodian and digital solution provider Perpetual Corporate Trust reported underlying net profit growth of 19 per cent, with funds under administrations expanding 6 per cent from the prior corresponding period to $990.4 billion.

Looking forward, Mr Adams affirmed Perpetual’s FY22 operating expense growth guidance of between 18 to 22 per cent.

“Together with our strong balance sheet and ongoing progress with our global distribution strategy, Perpetual is well-positioned to drive organic growth, and to capitalise on further acquisition opportunities that together deliver greater shareholder returns."