Perpetual's profit plummets
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Perpetual has announced a 71 per cent decline in net profit after tax to just $37.7 million.
In an announcement released on the Australian Securities Exchange (ASX) today, the company pointed to its underlying profit after tax being down 51 per cent to $133.5 million and attributed the decline to what it described as “the massive fall in equity markets during the past financial year".
Perpetual chairman Bob Savage said declining markets had created the worst year on record for the attractiveness of equities and this had deeply impacted investor sentiment.
He said while Perpetual Investments and Perpetual Private Wealth had experienced declines in profitability in line with the market, Perpetual Corporate Trust’s profit before tax had risen 22 per cent.
Despite the bad result, Perpetual chief executive David Deverall said the company had been successful in positively influencing what it could control within its environment.
He said the company’s client and investor base had remained stable during the course of the downturn and Perpetual had continued to grow market share.
Drilling down on the company’s result, its announcement to the ASX revealed Perpetual Private Wealth had experienced a 12 per cent decline in funds under advice to $6.8 billion, with underlying profit before tax down 37 per cent to $29.1 million.
AUTHOR
Mike Taylor
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