Perpetual has joined the ranks of major financial services businesses reporting the impacts of the COVID-19 pandemic with its full-year net profit after tax down 29% to $82 million.
Notwithstanding this the company will deliver shareholders a 50 cents per share dividend bringing total financial year 2020 dividends to $1.55 per share.
Commenting on the result, Perpetual chief executive, Rob Adams acknowledged that the company’s diversification had been useful but not enough to counter the impacts of COVID-19.
“While our increasingly diversified business has provided some protection against the extreme volatility seen in global investment markets, our overall FY20 financial results have been impacted due to COVID-19 effects and net outflows form Perpetual Investments,” he said.
The full-year result revealed that Perpetual Private was down 27% to $30.1 million with the result impacted by increased investment in supporting future business growth, combined with the economic slow-down in the second half and the sustained low interest rate environment.
However, Adams said the business had managed to “materially grow its network of culturally aligned advisers” by onboarding 20 new advisers who added more than 150 high net worth clients.
“With its strong brand, Perpetual Private is uniquely positioned to benefit from ongoing industry dislocation and to continue to accelerate its growth through the pursuit of culturally and strategically inorganic opportunities,” he said.
The company reported that the Perpetual Investments business reported a 31% decline in profit before tax of $55.4 million primarily driven by a decline in revenue due to lower average Funds Under Management (FUM) resulting from net outflows, lower performance fees and COVID-19 related market volatility.
