EQT Holdings reports 29% net profit
Equity Trustees has reported a 29% growth in net profit to $12.7 million helped by growth in funds under management, administration and supervision (FUMAS) and a positive recovery for equity markets.
During the period of six months to 31 December 2021, FUMAS went up by 19%, compared to the previous corresponding period, to $152 billion while revenue rose 16% to $55.9 million.
In the superannuation space, funds under supervision rose 21.2% from $29.2 million to $35.4 million and the firm said it was benefiting from increased demand for its independent trustee model. Superannuation revenue increased from $9.4 million to $10.5 million thanks to $0.5 million from equity market performance and $0.6 million in organic growth.
The board declared an interim dividend of 48 cents per share, up 9% from last interim, and the highest interim dividend in 10 years.
Mick O’Brien, the company’s managing director, said that FUMAS continued growth was facilitated by the strength of the group’s core business and the substantial investment in its people and technology.
Also, the recovery in the equity markets contributed to the result, which was driven by strong organic growth across each of the business.
“We continue to benefit from demographic, regulatory and structural tailwinds, while new business initiatives and potential opportunities in adjacent markets provide further upside,” he said.
“Our balance sheet remains strong, with low gearing, a strong regulatory capital position and sufficient funding capacity should this be required.”
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