Shaky markets hit Perpetual business units
Shaky equity markets have seen profits slide in the Perpetual Investments and Perpetual Private business units, but overall profits rose for Perpetual in the first half of 2016.
Perpetual's half yearly results showed net profit after tax stood at $64.4 million for the six months to 31 December 2015, up 10 per cent on the first half of 2015, while underlying profit after tax stood at $63.6 million up two per cent on the first half of 2015.
Perpetual chief executive and managing director, Geoff Lloyd, said the results were positive despite volatile equity markets and low investor confidence.
"We are operating in a volatile and challenging external environment and it has been critical to focus on what we can control — our client focus, prudent expense management and disciplined implementation of our investment program," he said.
Perpetual Investment's profit shrunk by five per cent or $3.1 million from the first half of 2015 to $57.2 million, due to shaky equity markets, and this offset positive net inflows during the period and outperformance of funds.
Perpetual Private's profit before tax was $17.2 million, which was $1.7 million or nine per cent lower than the first half of 2015. This was partially offset by the growth in new clients in the period.
"Our Perpetual Private growth strategy remains on track. In the first half we delivered a strong result with growth in high net worth clients as well as not-for-profit and philanthropy. We have delivered five consecutive halves of positive net flows and net client growth," Lloyd said.
"During the half we also acquired medical education and advice business Fintuition as part of our focus on meeting the specific advice needs of medical specialists," he said.
Perpetual Corporate Trust's profit before tax rose by 16 per cent from the first half of 2015 to $16.6 million, reflecting growth in the fund services businesses and the underlying Trust.
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