IOOF reshapes and focuses on wealth
IOOF has pointed to a reshaping of the business as it reported a 17 per cent decline in underlying net profit after tax to $79.4 million on fund flows $1.4 billion and an increase in funds under administration and advice to $109.4 billion.
The result announcement, released to the Australian Securities Exchange (ASX) today, saw the companying pointing to positive platform flows up 46 per cent to $1.4 billion and positive advice flows up 17 per cent to $865 million.
Much of IOOF's future focus appears directed towards building out its core wealth management capabilities and the results announcement claimed record levels of interest in its advice group from experienced advisers from other institutional licensees.
IOOF managing director, Christopher Kelaher said the business was being "reshaped" through "selective divestments and acquisitions".
He said the objective was to strengthen IOOF's focus on its core wealth management business and position it for further growth.
"In this half, we divested several small non-core businesses, realising a profit of $17.4 million," Kelaher said.
He also pointed to IOOF's recent platform consolidation which he claimed that, supported by the quality of advice, had seen significant growth in total platform flows.
Kelaher said flows had increased by 173 per cent during the half which was particularly pleasing considering that Australian industry platform flows were down approximately 40 per cent in the last year.
"This result shows the value of our diversified business model," he said.
"We have seen record levels of interest in our advice group and have received in excess of 30 applications from experienced advisers from other institutional licensees."
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