Trust Company reports sound results

Trust Company Limited is holding its own amid testing market conditions, with reported net profit after tax (NPAT) up slightly in the 12 months to February this year.

While operating NPAT was down 10 per cent on the prior comparative period, coming in at $15.5 million, Trust reported NPAT at $20.6 million, up 2 per cent on the previous period.

A spokesperson for Trust said the sale of the financial services company’s stake in a BNY Mellon joint venture increased the reported NPAT. The joint venture saw Trust offering trustee services to securitisation organisations, however, Trust recently sold its 50 per cent share in order to focus on other areas.

Trust, which has positions in both the institutional and retail sectors, has reported more than $416 million in funds under trusteeship.

In a release to the Australian Securities Exchange (ASX), the company said its independent responsible entity (RE) services “won significant mandates [in the 2009 financial year]”, adding that new business in the health and personal injury team was up 66 per cent on the previous comparative period.

“The Cash Management Trust also maintained steady fund levels, a solid result given it competed against institutions that were the beneficiaries of the government guarantee,” the statement from Trust said.

Looking ahead to financial year 2010, Trust said it will be suspending the dividend reinvestment plan and targeting a dividend payout of 100 per cent of reported NPAT (fully franked), subject to the outcome of a dividend policy review. In the past, Trust paid out dividends of no less than 90 per cent of full-year operating NPAT.

Trust began a strategic review in March this year, including a review of its capital management and dividend policies, a process expected to be completed by October.