Perpetual Limited has reported an 11 per cent decline in net profit after tax to $87.6 million for the half year to December 31, despite a 19 per cent increase in operating profit before tax to $114.2 million.
At the same time, the company has warned that its revenue and profit will be impacted by recent volatility and fluctuations in the Australian equities market.
The company told the Australian Securities Exchange that its operating profit after tax was $79.3 million, representing a 15 per cent increase on the prior corresponding period.
However, the operating profit after tax excluded a $21.1 million profit after tax from the sale of a portion of its investment portfolio and $12.8 million of losses after tax relating to the Exact Market Cash Fund product.
It said on that basis net profit after tax was down 11 per cent.
Importantly, the company’s results showed that Perpetual Private Clients’ operating profit before tax increased 24 per cent to 22.2 million.
Commenting on the result and the outlook, Perpetual managing director and chief executive David Deverall said that while Perpetual’s investment management style typically performed well relative to its competitors in this environment, the recent fluctuations in the Australian equities market would impact revenue and profit to June 30, 2008.
