Treasury Group net profit jumps 50 per cent-plus


A 54 per cent increase on last year’s figures in Treasury Group’s net profit after tax (NPAT) has been driven by significant inflows into its RARE, IML and Celeste Funds.
The group banked $10.4 million NPAT and $10.6 on an underlying basis - an increase of 32 per cent from the previous 12 months. It represented a 5 per cent growth ($0.8 billion) in funds under management (FUM) to $17.1 billion.
Growth in FUM was due to stronger market conditions, the realisation of reduced costs and the performance of RARE, IML and Celeste Funds which received $1.7 billion net in funds inflows compared to $0.9 billion in the previous year.
Treasury Group said retail funds inflows into the three funds was driving a shift in its overall FUM towards higher margin retail, leading to an average net margin (excluding Trilogy) of 55 basis points - a 7.8 per cent improvement on the 51 basis points average net margin in 2012.
The fund’s success offset significant funds outflow from low institutional mandates from Orion Asset Management, although Treasury Group said it continued to be a profitable business with over $3.4 billion FUM.
It said impressive performance had led the board to increase fully franked dividends by 15 per cent to $0.23 a share.
“The increase in the full year dividend evidences the Board’s confidence in the company’s financial position and foreseeable operating outlook,” Treasury Group chairman Mike Fitzpatrick said.
Following the announcement of the group’s performance, stockbroker Ord Minnett said it continued to rate the group a 'buy’. IML and RARE would experience operating leverage off the back of improved FUM balanced, it said, forecasting 2014 growth earnings at 17 per cent and valuing shares at $10.72 a piece.
Recommended for you
In this week’s special edition of Relative Return Insider, we bring you outgoing Financial Services Minister Stephen Jones’ keynote from Momentum Media’s Election 2025 event, followed by a Q&A focused on the Delivering Better Financial Outcomes reforms.
In this week’s episode of Relative Return Unplugged, Dr Vladimir Tyazhelnikov from the University of Sydney’s School of Economics joins the show to break down the shifting sands of global trade dynamics and attempt to understand the way US President Donald Trump is employing tariffs.
In this week’s special episode of Relative Return Unplugged, we present shadow treasurer Angus Taylor’s address at Momentum Media’s Election 2025 event, followed by a Q&A covering the Coalition’s plans for the financial services sector.
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.