Rising costs drag down profits at Australian Ethical

financial-results/

29 August 2022
| By Staff |
image
image
expand image

Australian Ethical has reported its net profit after tax (NPAT) fell 15% to $9.6 million for the year ended 30 June, while its underlying profit after tax (UPAT) declined 7% compared with the year prior, to $10.3 million.

In its annual results announced to the ASX, the super fund said expenses rose 28% over the year as the business continued to implement its high-growth strategy, which was outlined in the FY21 results.

While funds under management (FUM) did rise 2% to $6.2 billion over the reporting period, having started 2022 with FUM of $6.94 billion, outflows were significant in the second half of the year. Despite this, the fund’s operating revenue increased 21% to $70.8 million and a final dividend of 3 cents was announced, taking the total FY22 dividend to 6 cents per share.

“Our operating revenue has increased and profit has remained solid as we invested in line with our high-growth strategy,” said John McMurdo, CEO of Australian Ethical.

“At a time when many in the financial services industry are seeing outflows, we’ve seen strong growth in both retail and wholesale net flows as well as customer numbers, as people seek to invest in line with their values,” he added.

Despite falling 8% on last year, the fund reported positive inflows of $0.9 billion, while higher margin retail and wholesale net flows (excluding institutional) rose 20% to $1.1 billion.

“In line with our strategic roadmap, we will continue with disciplined investment in our business, balanced with careful cost management,” McMurdo said. “We are prudent stewards of capital, but we’re not afraid to invest for the long term when we see a chance to further strengthen our advantages.”

“Looking ahead, we expect the growth in net flows to continue in FY23, with further diligent investment in the business as we execute on our strategic roadmap, balancing market volatility with the growth opportunity,” he added. “As such, our profit outlook will reflect the higher growth on operating expenses versus revenue.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

3 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

3 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months 2 weeks ago

A former Victorian financial adviser has been sentenced after stealing $4.4 million from clients, family and friends to feed his “raging gambling addiction”....

4 weeks ago

A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rule...

2 weeks 6 days ago

Prime Minister Anthony Albanese has confirmed who will succeed Stephen Jones to serve as the Assistant Treasurer and Financial Services Minister. ...

2 days 5 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
5
Plato Global Alpha A
28.83 3 y p.a(%)