Equity Trustees has reported funds under management, administration and supervision (FUMAS) of $155.5 billion for the six months to 31 December 2022, a 4.4 per cent increase on the previous half.
Announcing its results to the ASX on Thursday, the specialist trustee company said that its revenue increased 12.8 per cent compared to the previous half and 12.3 per cent on the previous corresponding period (pcp) to $62.8 million.
Underlying net profit was 2.5 per cent higher than the pcp and 11.3 per cent higher than the prior half at $13.0 million. Statutory net profit was $7.6 million, reflecting one-off costs associated with the acquisition and integration of Australian Executor Trustees (AET) as well as one-off implementation costs of Equity Trustees’ technology investment program.
“FUMAS and revenue remain on a steady upward trend, demonstrating the strength of our core business and our leadership in trustee services across Australia. Our underlying profit has also risen despite adverse investment markets,” said Equity Trustees managing director Mick O’Brien.
Each of the firm’s core businesses was said to be performing well, including an uplift in revenue for trustee and wealth services driven by organic growth in most areas and the AET acquisition.
Equity Trustees said that superannuation trustee services also performed strongly, while corporate trustee services experienced good organic growth offset by adverse global markets.
The integration of AET, which was reported to be on track, has significantly enhanced Equity Trustees’ capability in private client trustee services, according to Mr O’Brien.
“Our technology investment program represents a key plank in EQT’s transformation. We are implementing four major technology programs in parallel, to transform the client and employee experience, scale up the business operations, and improve productivity,” he added.
“These investments will transform Equity Trustees, providing us with a more competitive foundation to create a long-term, sustainable future.”
The firm has declared a fully franked interim dividend of 49 cents per share, in line with the previous half and up one cent on the pcp.
“Equity Trustees continues to invest in its future and to capitalise on its specialist focus on trustee services,” said Mr O’Brien.
“Our balance sheet remains strong, with low gearing and a strong regulatory capital position. This provides stability in volatile times and the flexibility to fund growth as required.”