Diverger adviser revenue increases in FY22
Net revenue for full advisers at Diverger has risen by 29% to $8.2 million in the past year thanks to improved fee models and organics fee growth within adviser practices.
In an announcement to the Australian Securities Exchange (ASX), the firm said total net revenue was $15.4 million, up from $12.9 million in the previous year.
For full advisers in the wealth division, the number of firms had risen from 149 to 155 with 1.4 advisers per firm, down slightly from 1.5 last year.
The net revenue for full advisers was $8.2 million, up 29% from $6.34 million a year ago, while average net revenue per adviser had increased from $32,300 to $37,000.
Diverger said the growth in net adviser revenue had been driven by the full year benefit of Paragem, which it acquired in February 2021, and improved fee models while there was strong organic fee growth of 17% within adviser practices.
Underlying profit for Diverger was $7.06 million, up 4% from $6.81 million in 2021.
The firm also confirmed talks with Centrepoint Alliance, which were announced earlier this year, were “continuing and currently inconclusive”.
A combined group, the firm said, would provide a significantly strengthened market-leading position with greater operational scale, an expansion of core client services and a platform for enhanced market liquidity.
AUTHOR
Laura Dew
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
