YBR wealth revenue grows 25 per cent
Strong revenue growth in the wealth division saw Yellow Brick Road (YBR) record its maiden profit for the six months to December 2016, with a net profit after tax (NPAT) of $400,000.
This was a $4.5 million improvement on the first half of the 2016 financial year, which saw a loss of $4.1 million.
The firm’s wealth business recorded revenue growth of 25 per cent, including a 29 per cent improvement in recurring revenues. Recurring revenue growth stemmed from a 28 per cent increase in underlying funds under management (FUM) and a 20 per cent increase in premiums under management (PUM) since 30 June 2016.
The firm saw a 26 per cent increase in life insurance completion volumes.
In an announcement to the Australian Securities Exchange (ASX), the firm said a streamlined product range enabled it to direct training resources across fewer products to support branch and adviser performance, while advisers were better informed across fewer products.
“Over the last six months YBR’s Wealth CRM [customer relationship management] completed its pilot phase,” the firm said.
“When full implementation is achieved, in H2 FY2017 branches will be empowered to develop their own statements of advice (SOA) without the need for head office support or the cost and delays of external para planning.
“Along with smart technology development and deployment, this initiative will reduce costs, improve processing time and improve the overall customer experience for simple wealth SOAs.”
The company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) excluding non-operating costs was $3.1 million, a $5.1 million improvement on H1 FY2016.
The firm appointed Westpac’s Adam Youkhana as general manager of its wealth division in September last year after Matt Lawler resigned in July.
Lawler moved to OneVue in November.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.