Equity Trustees has announced record funds under management, administration and supervision (FUMAS) of $224 billion in 1H25.
In a note on the ASX on Thursday, EQT said growth stood at 25.8 per cent compared to 1H24.
Revenue was $89.4 million for the six months to December, up 6.5 per cent on the prior corresponding period (pcp), which EQT said reflected strong organic growth, particularly from its Corporate Trustee Services business and favourable market conditions.
However, expenses increased 12 per cent on the back of non-recurring costs associated with its Australian Executor Trustees (AET) integration, the exit of the AET legacy platform business, increased costs relating to people, financing and the transition to an outsourced custody model.
As a result, statutory net profit after tax stood at $12.9 million in 1H25, down 11 per cent on pcp, but 10.6 per cent higher on 2H24. Underlying net profit after tax was $16.4 million, down 7.4 per cent.
Commenting on the results, board chair Carol Schwartz said it has been a “transformational” period for EQT, with its completed AET acquisition, exiting UK and Ireland, and continued investment in modern technology systems occurring over the half-year.
“I’m proud that we achieved all these milestones while continuing to grow our business,” Schwartz said.
“Equity Trustees is the independent market leader in Australian trustee services, with majority market shares in key growth areas.”
Moreover, the firm’s trustee and wealth services (TWS) announced revenue of $50.9 million, up 2.9 per cent on the pcp. This, EQT said, reflected organic growth, synergies associated with AET and buoyant investment markets.
Managing director Mick O’Brien said: “This is a pleasing result, particularly when we have balanced the AET integration, a major program of technology change and the outsourcing of the majority of TWS custody arrangements.
“TWS will now be actively focused on top line growth, including the development of digitally enabled channels for a number of its major services. Recent investments in technology will enable opportunities not previously available for TWS in this space,” O’Brien added.
For its Corporate and Superannuation Trustee Services (CSTS), it delivered revenue of $38.3 million, up 11 per cent.
According to O’Brien, CSTS delivered a strong new business pipeline over the half, which is expected to continue.
“CSTS continues to enjoy leadership positions in its key lines of business and the Superannuation Trustee Services business is seeing increasing interest from a variety of participants across the industry.”
Looking ahead, O’Brien said the outlook remains positive, citing EQT’s ability to capitalise on “favourable industry dynamics and leading positions in key markets”.
“We anticipate a return to profit growth in the second half of the financial year, barring any unforeseen material market disruption or other impacts.”
“Our cash flow generation remains strong and our balance sheet conservative, with low gearing and good flexibility to take advantage of future opportunities.”
The EQT board declared a fully franked interim dividend of 55 cents per share, up 4 cents on pcp.
