IOOF reports a drop in profit of nearly 50 per cent but chief executive is satisfied given the adverse conditions.
Melbourne-based funds management group IOOF Holdings (IOOF) has reported a drop of nearly 50 per cent in underlying interim net profit.
IOOF reported an underlying net profit after tax (UNPAT) of $7.9 million for the half year ended 31 December 2008, down from $15.7 million for the six months ended 30 June 2008.
Funds under management and administration were $12.1 billion and reported net profits after tax stood at $9.1 million.
IOOF chief executive Tony Robinson said he was satisfied with the group's response during the financial downturn.
"IOOF remains well-positioned to cope with current market conditions due to our financial strength, the diversity of our earnings, low cost ratios and a sensible approach to capital management," Robinson said.
However, Robinson said IOOF's acquisition ability would be impaired.
"While we continue to pursue possible acquisitions for the business, IOOF is obviously impacted by continued market volatility and in this climate we remain focused on building our internal capacity across the group to maintain our performance," Robinson said.
Last year IOOF and Australian Wealth Management announced they would merge to form an $88 billion financial services firm. The merger is expected to be completed by the end of April 2009.
As a result of the pending merger, directors are considering a special dividend of 9 to 14 cents per share to be paid until July.
"We think this is a better outcome for all shareholders, so all stand equally and together to receive a dividend," Robinson said.
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