Full service stockbroking and financial advisory firm Bell Financial Group (BFG) said its interim profit dropped 28 per cent due to difficult trading conditions in the first few months of the year.
The firm’s net profit after tax slipped to $6.6 million in the six months to June 2009 from $9.2 million in the prior corresponding period.
Stocks around the world dropped in much of the first quarter on concerns over possible bank nationalisations in the United States and Europe, and the economic turmoil in eastern Europe.
The S&P/ASX 200 Index dropped as low as 3124 points and the MSCI World Index touched a 13-year low in early March before rebounding.
“Whilst the numbers are below those reported in the corresponding prior year period, given the circumstances we are pleased we are in a position to report a profit,” BFG managing director Alastair Provan said.
“Trading conditions for the first couple of months of the year were particularly difficult. However, we saw a marked improvement in conditions from thereon in, and pleasingly, this has continued into the start of our second half.
“The acquisition of Southern Cross Equities has been very successful and has added to our client base, our research and our wholesale broking capabilities and has already made a significant bottom-line contribution to the group.”
BFG remains well capitalised and continues to pursue opportunities for growing revenue, Provan said.
Earlier this month, BFG formed a new real estate advisory business made up of former employees from firms including UBS, Babcock & Brown, Deutsche Bank Australia, Macquarie Group and Merrill Lynch.
The division will sit under BFG subsidiary Bell Potter Securities and provide dealer groups, financial advisers, high net worth individuals and other clients with research on securities in the Australian real estate investment trust sector.
