Perpetual shares gain on profit rise
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The news: Fund manager Perpetual’s shares gained after reporting a surge in net profit after tax (NPAT) for the first half of FY26 due to lower transaction and integration costs.
Perpetual said it is still in negotiations with Bain Capital Private Equity on the potential sale of its wealth management business.
The numbers: The company posted a 349% rise in NPAT to $53.9 million and noted the half did not have any impairment losses.
Its underlying profit after tax was up 12% to $112.7 million driven by growth in its corporate trust, stronger equity markets and lower expenses in its asset management arm.
Perpetual reduced funding costs following the refinancing of debt facilities in 2H25.
During the prior corresponding period, Perpetual was impacted by a $25.5 million impairment on its asset management business along with one-off costs following the termination of its proposed takeover by KKR.
Perpetual’s shares were up 2.16% to $17.52 by 10:28am AEDT but over the past 12 months has tumbled 24%.
Its assets under management lifted 2% to $230.3 billion, while its wealth management funds under advice (FUA) gained 7% to $21.9 billion.
Its corporate trust debt market services closing FUA rose 1% to $733.6 billion while its corporate trust managed funds services closing FUA increased 11% to $580.6 billion.
Perpetual will pay an interim dividend of 59 cents per share, down from 61 cents a year earlier.
The company’s gross debt at 31 December 2025 was $744.2 million, compared to $738.5 million at 30 June 2025, which it attributed to net additional drawdowns of $10 million during the period.
However, the potential sale of its wealth management arm along with its simplification and cost reduction initiatives is “expected to further strength the group’s capital position over the longer term”.
What they said: Perpetual chief executive Bernard Reilly said: “In parallel we are establishing a clear standalone operating perimeter for the Wealth Management business to support a potential sale and ensure continuity with minimal disruption for our clients and teams”.
The source: ASX
