IOOF surges on back of SFG acquisition
IOOF has reported a record underlying net profit of $80.6 million for the half year with recent acquisition SFG contributing around a fifth of that figure with fund under advice and net flows into platforms also experiencing high levels of growth.
IOOF stated the record figure was for underlying net profit after tax pre-amortisation (UNPAT) and that statutory net profit after tax was $66 million.
IOOF managing director Chris Kelaher stating the inclusion of SFG, which contributed $16.4 million to the group's result, had been immediately earnings per share accretive and lifted the scale of the IOOF group.
The group's revenue increased by 38 per cent to $267.9 million for the period with organic net flows into platforms also increasing by 38 per cent to $860 million.
Funds under management, advice and administration increased by 26 per cent to $118.7 billion with SFG's contribution of $19.9 billion in funds the main driver for the increase according to IOOF.
IOOF also stated that planner numbers with SFG had remained stable and that cost synergies between IOOF and SFG had reached $3.5 million (pre-tax) for the period and IOOF was on target to achieve a synergy target of $20 million by the end of 2016.
AUTHOR
Jason Spits
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