Netwealth has seen its managed accounts business boosted by 70% during the last financial year with $9.8 billion funds under management (FUM), while the average wrap account was over $1 million.
In its 2021 full-year results announcement to the Australian Securities Exchange (ASX), it said the average account size had increased to $481,000, which was $1,082,000 for wrap and $240,000 for superannuation accounts.
Total FUM grew by 61.4% to $11.7 billion, while funds under administration (FUA) grew 49.6% to $47.1 billion.
Net profits after tax (NPAT) increased 23.9% to $54.1 million, platform revenue increased 17% to $142 million, and 15,515 new clients were added for a total of 97,319.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 19.9% increase to $79.3 million.
Netwealth said the major banks that had exited financial advice or were in the process of doing so and the largest platforms had experienced prolonged and significant outflows which was creating opportunities for Netwealth.
“Many of the platforms are facing increasingly large service, technology and functionality gaps and are either currently changing or are expected to, change ownership or be part of a M&A [merger and acquisition] transaction,” it said.
“The changing advice landscape is leading to the establishment of new independent advice groups while other formerly aligned advisers move to existing independent...