Platforms and wealth drive strong IOOF result
IOOF Holdings Limited has announced a 42 per cent increase in statutory net profit after tax to $196.8 million on the back of strong net fund flows of $1.8 billion driven by its platform and advice businesses.
Announcing the result to the Australian Securities Exchange (ASX) today, IOOF managing director, Christopher Kelaher, described it as a pleasing outcome in the face of turbulent market conditions.
He said IOOF's enhanced scale and diversified revenue streams had delivered continued positive fund flow in advice and platforms, with total net flows on $1.8 billion.
"We continue to strengthen our core wealth management offering through pursuing platform consolidation and business simplification, while maintaining a strong balance sheet which sees us well-positioned to take advantage of future growth opportunities," Kelaher said.
The IOOF ASX announcement said the company had recorded its 14th consecutive quarter of positive net flows in platforms and net flows for the year of $1.3 billion through advice channels, with the advice flows including $266 million through the Shadforth business.
The announcement said that IOOF's 2014 acquisition of Shadforth was successfully completed in the first half of the financial year with $25 million in full year pre-tax cost synergies achieved, substantially exceeding expectations of $15 million.
Looking over the horizon, Kelaher said the ongoing simplification of IOOF's core wealth management business would continue with initiatives such as platform consolidation and the divestment of non-core businesses.
He also confirmed that IOOF would remain acquisitive, pointing to the company's strong balance sheet positioning it to pursue future growth opportunities.
AUTHOR
Mike Taylor
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