IOOF has posted a strong first half with statutory net profit after tax up 96% over the prior corresponding period to $54.4 million, largely driven by the benefits of its acquisition of ANZ’s Pensions and Investments (P&I) business.
The first half results, announced to the Australian Securities Exchange (ASX) pointed to six months of the P&I business contributing to a gross margin of $125.3 million.
The board declared a fully-franked dividend plus a special dividend, bringing the total dividend payout to 11.5 cents per share.
IOOF chief executive, Renato Mota described it as a solid result with funds under management and advice having grown and an increased underlying profit.
On the financial advice front, IOOF’s first-half announcement said the company remained on track to deliver its so-called Advice 2.0 synergy targets with the first tranche of annualised savings expected to be $10 million in the second half, with a break-even situation with respect to self-employed advice by the 2023 financial year.
It said that Wealth Central, which it acquired in September last year, was now being utilised by 358 advisers.
Mota said the strategy had created a better IOOF, which remained committed to supporting advisers and their clients through unmatched technologies, choice and life strategies.
“Out extended scale and reach, along with our Advice 2.0 model, enable us to develop end-to-end client opportunities which are highly valued by advisers partnering with IOOF to support their business needs,” he said.