MA Financial shares slump on profit drop and weaker outlook
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The news: Asset manager MA Financial has posted a drop in full-year profit and flagged a weaker outlook, prompting a slide in its shares.
The numbers: The group reported a 31% decline in net profit to $31.1 million for calendar year 2023, with revenue up 7.8% from a year ago to $765.4 million.
It will pay a total dividend of 20 cents a share, unchanged from a year ago.
Shares in the company were down nearly 14% to $4.85 in early trading on the ASX.
The context: MA Financial attributed the weaker result to weak capital market and investment banking activity and reduced value of assets amid a challenging macroeconomic environment.
Gross fund inflows were up 27% to a record $1.94 billion over the period. However, earnings at its corporate advisory and equities business slumped 51%, while the asset management business contributed 80% of the group earnings of $81.6 million.
Group earnings per share was lower than expected at 17.8 cents. The asset manager warned investors that recurring revenue margin is expected to be lower in 2024 due to the impact of interest rates on real estate, while performance fees will be broadly similar.
The source: ASX announcement
