Insignia Financial said its FY22 results released on Thursday (25 August) provides a “solid foundation for growth” with the company reporting an underlying net profit after tax (UNPAT) of $234.5 million; a 59 per cent increase on FY21.
Insignia also confirmed a 102.8 per cent gross margin increase of $1.48 billion which it attributed to its acquisition of MLC last year — and its integration with Bridges — and a growth in funds under management and administration (FUMA), as well as $36.8 million NPAT and a $3.1 billion improvement to platform flows.
A final dividend of 11.8¢ a share fully franked has also been confirmed.
In its advisory segment, Insignia has $104 billion of superannuation and investment funds across 480,000 clients, while its Evolve wrap suite (which includes eXpand, Essential and Shadforth Portfolio Service) reached $2.8 billion of net inflows.
As previously anticipated, the ex-ANZ aligned licensees achieved target break-even in 2H22, after Insignia reported a reduction in the number of advisers last month to 1,600. That figure is made up of 798 self-employed advisers across 427 practices, 546 self-licensed advisers across 107 practices, and 256 salaried advisers.
CEO Renato Mota said the wealth giant is committed to “reshaping” an affordable and accessible advice offering.
“We are focused on expanding the capability of technology to shape client experience and drive personalisation, while pursuing the opportunity to reach Australians who do not currently receive financial advice,” he said.
“We believe innovation and technology will help us work towards delivering advice across various digital channels. This includes leveraging our proprietary wealth central technology to enhance the client and adviser experience, streamline the advice process, and increase the productivity of face-to-face engagement.”
Insignia said it also expects client payments of $356 million under the advice and product remediation programs — which ASIC confirmed this week that $3.6 billion has been paid or offered by AMP, ANZ, CBA, Macquarie, NAB and Westpac for financial advice-related misconduct — will be paid to clients by 30 September.
Insignia (then IOOF) took ownership of ANZ’s aligned dealer groups including Millennium3 Financial Services, RI Advice and Financial Services Partners.
Looking ahead, Mr Mota said the company look to broaden its wealth proposition “to address the growing demands across life stages” and said its transformation process has “fundamentally” changed the business.
“We are building a business that is relevant, resilient and poised to deliver financial wellbeing for all Australians,” he said.
