IRESS notches up 38 per cent rise in profits
IRESS has announced its half year results with a total statutory net profit of $28.5 million after tax, representing an increase of 38 per cent for the six months between 31 December and 30 June this year, as the company increasingly looks to expand its regional influence and invest in enhancing its digital advice offerings.
As a result of its first half earnings, IRESS directors will pay an interim dividend of 16 cents per share franked to 50 per cent, at a 30 per cent corporate tax rate.
Segment profit for IRESS during the same period increased by 10 per cent to $57.5 million, as IRESS weathered the storm posed by the voluntary administration and liquidation of BBY Ltd together with the withdrawal of CIMB Securities from Australia.
IRESS chief executive officer, Andrew Walsh, said the result was indicative of IRESS' sustained strength in core businesses, including a resilient financial markets business and strong demand in wealth management.
"Our financial markets business remains highly resilient in the context of external structural challenges and two unexpected client developments," he said.
"The Australian result was negatively impacted by the voluntary administration and liquidation of BBY Limited. In addition, during the period CIMB Securities withdrew from the Australian market."
IRESS' partnership with the Commonwealth Bank of Australia (CBA) and its acquisition of digital platform provider Innergi were hailed as two key highlights developments that have helped the company reach "strategic milestones" as well as adapt to changing customer demands and regulatory requirements.
The collaboration with CBA in particular saw the introduction of XPLAN Prime, a scalable digital advice solution leveraging IRESS' XPLAN technology platform to enable a unified, multi-channel framework for delivering advice.
Walsh hinted at further investment in technology financial markets solutions to strengthen IRESS' customer offerings, as the company evaluates a number of "organic and acquisition opportunities" in the medium-long term, in addition to building "meaningful" regional businesses.
"Our next-generation online market data and trading solution is being received very positively by clients and will be formally launched in the coming months," he said.
Recommended for you
Financial Services Minister, Stephen Jones, will keynote Momentum Media’s Election 2025 event.
Rising bearishness among investors has led to a retreat into defensive assets, according to the latest quarterly manager and intelligence trends report from Bfinance.
Cbus Super, the superannuation fund for blue-collar workers, has announced it paid out almost $300m in insurance claims over the last financial year, a rise of $40m from the year before.
The $700 million not-for-profit fund Lutheran Super has announced it is to merge into Mercer Super, with the transfer set to take place in the fourth quarter this year.
