Wealth manager Insignia Financial has reduced its first-half statutory loss from $50 million to $17 million. The improvement is attributed to its ongoing cost reduction initiatives.
Despite providing limited due diligence to potential takeover suitors—including CC Capital, Bain Capital, and Brookfield Capital Partners—the company has not entered into any further agreements with these buyers at this time.
The Numbers:
Underlying Net Profit After Tax (NPAT): $124 million, reflecting a 30% increase compared to the prior corresponding period.
Net Revenue: $705.8 million, up 1.5% year-on-year.
Expenses: Reduced by 6.9% to $482 million.
Funds Under Management and Administration (FUMA): Increased by 8.6% to $320 billion, with total FUMA at the end of the period rising 8.7% to $326.8 billion.
At market open, Insignia’s shares saw a slight increase of 0.2%, reaching $4.63.
The Context:
Insignia’s growth in underlying profit is primarily driven by market performance and continued operational cost reductions. The company has also focused on simplifying its business, introducing a new operating structure and executive team. Furthermore, Insignia has launched a strategy aimed at becoming “Australia’s leading and most efficient wealth management company by 2030.”
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