Wealth management proved a key driver in a $216 million six month profit reported by Promina Group Limited today, with the company’s financial services division recording a net profit of $55 million.
The $55 million net profit recorded by the financial services division, which includes Asteron and Tyndall, was down from $60 million recorded in the same period in 2005, but the company pointed to an improvement in operational performance, with pre-investment operating margins increasing by 23 per cent to $38 million after tax.
It said this included a $7 million improvement in operating margins, offset by a decrease of $12 million in investment returns on shareholder funds.
However, the company said that the wealth management component of operating margins delivered a 180 per cent increase to $14 million from $5 million posted in the first half of last year, while the life risk component of operating margins was $24 million down from the $26 million posted in the first half of 2005.
It said total operating revenue in the financial services group had increased by 3.9 per cent, driven by strong retention rates in the life risk business and a renewed focus on sales, while Tyndall Asset Management had recorded a 16 per cent increase in funds under management.
