FUA helps WHK Group post record first half profit
Strong growth in funds under administration (FUA) helped WHK Group post a record net profit of $12.39 million, an increase of 15 per cent on the previous half-year result of $10.77 million.
FUA also helped the group post a 19 per cent increase in operating revenue to $148 million for the six months to December 31, last year, up 19 per cent on the corresponding period in 2005-06.
FUA grew by 12 per cent or $800 million to $7.52 billion as at December 31, last year, compared to $6.72 billion recorded at June 30, 2006.
Increased FUA and higher average margin together contributed to a jump in recurring revenue from financial planning to $22.67 million for the first six months this year, a rise of 21 per cent over the corresponding period in 2005-06.
New FUA inflows increased by 10 per cent to $339 million so far this year, up from $308 million in 2005-06, while the average margin on FUA continued to rise, increasing to 0.64 per cent, up from 0.61 in 2005-06.
Operating revenue of the financial services division for the period increased by 20 per cent to $38.61 million, compared to $32.30 million for the corresponding period in 2005, mainly as a result of strong organic revenue growth.
Revenue from risk insurance grew by 36 per cent to $2.33 million (2005: $1.71 million); and administration revenue from self-managed super funds grew to $5.68 million (2005: $4.91 million), a rise of 16 per cent.
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