IOOF profit up 200 per cent despite Royal Commission criticism
Written on the 19 February 2019 by Business News Australia
Despite being singled out by the final report from the Royal Commission into the banking and finance sector IOOF (ASX: IFL) has had a strong start to FY19.
The financial advice and investment manager saw its statutory NPAT rise by 200 per cent in the half to $135.4 million. Underlying NPAT was also up slightly to $100.1 million.
The 200 per cent increase into the statutory NPAT can be attributed to large, one-off, non-recurring items, including the sale of IOOF's corporate trust business, $25 million recovery of amounts paid in settlement of litigation, and a $28 million goodwill impairment of Perennial Investment Partners Limited which occurred in the prior corresponding period.
The company's result was also helped by its acquisition of ANZ's Aligned Dealer Groups (ADG) business.
At the end of 2018 IOOF now has $137.8 billion in funds under management, up 10 per cent in the last six months.
Unlike fellow financial advice company AMP, which greatly suffered at the hands of royal commission findings, IOOF seems to have emerged unscathed from the whole operation.
Reiterating his statement made the day after the final Royal Commission report was handed down acting CEO Renato Mota (pictured) says the company still faces a number of challenges to regain public trust.
"We have delivered a solid financial result in a difficult first half-year, and we're well aware of the challenge ahead to restore trust," says Mota.
"The Royal Commission has identified some serious failings within our industry and given us cause for reflection and a catalyst for change."
"We are listening to our clients, members, advisers and the communities in which we operate. We're resetting our relationship with APRA, setting higher standards in governance, and considering the recommendations of the Royal Commission's Final Report."
The company declared a fully franked dividend of 25.5 cents per share.
Shares in IOOF are up 7.55 per cent to $5.70 per share at 10.18am AEDT.
Business News Australia
Author: Business News Australia