Netwealth posted a net profit after tax of $27.6 million for 1H21, a $7.1 million increase, or 34.5 per cent up from the previous corresponding period.
The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) came to $30.5 million for the first half, a 30.1 per cent rise from 1H20.
Funds under administration (FUA) as at 31 December had risen by 23.2 per cent during the half-year to $38.8 billion. While there were net inflows of $4.5 billion, Netwealth also saw positive market movements of $2.8 billion during the six months.
The company expects the growth to continue, having provided a guidance range for the 2021 full-year FUA net inflows of $8.5 billion to $9 billion.
Matt Heine, joint managing director for Netwealth, commented the group had been recorded as the fastest-growing platform operator by net inflows for the 12 months to 30 September, with 38 per cent growth, relative to its FUA.
“We remain positive about continued market share growth, expected to benefit from ongoing industry consolidation and change,” Mr Heine said.
The group’s funds under management (FUM) had grown by 62 per cent or $3.6 billion over the 2020 year, to $9.3 billion. This included managed account FUM, which had also soared by 74.2 per cent ($3.2 billion) to $7.6 billion.
As previously declared by the board, Netwealth will pay a fully franked interim dividend to shareholders of 9.06 cents per share – totalling $22.1 million for the first half.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].