Netwealth’s profit up
Specialist platform provider, Netwealth has reported a strong growth across all key financial metrics, with a 23.9 per cent growth in underlying net profit after tax (NPAT) to $36 million for its full year results for 2019.
At the same time, funds under administration (FUA) increased by $5.4 billion and comprised of $4.3 billion FUA net inflows, meeting FUA net inflows guidance provided for FY2019 and $1.1 billion in market movement.
Total revenue, which resulted from continued strong FUA growth and increase transactional revenue and other ancillaries, went up by 18.6 per cent to $98.8 million.
The board declared a fully franked dividend of 6.6 cents per share, totalling $15.7 million and 12.1 cents per share for the full year.
The company also said that increased its investment in platform technology, bringing its IT head count to 74 during FY2019 and all internal IT platform development costs were expensed.
Netwealth’s managing director, Michael Heine, said: “Netwealth delivered further strong growth across all key financial metrics, while continuing to increase our ongoing investment in the platform.
“We maintained our position as the number one rated platform, increased our investment in our people, enhanced brand recognition and grew market share.
“We are focused on expanding our whole of wealth solution to the affluent and high net worth clients.”
He also said that the firm was confident of its growth opportunities and expected net inflows in FY2020 to exceed $7 billion and FUA to exceed $30 billion.
AUTHOR
Oksana Patron
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
