Key facts from Perpetual's 1H24 financial results

Perpetual Limited (ASX: $PPT) has released its financial results for the 6 months ended 31 December 2023. The company reported an underlying profit after tax of $98.2 million for the period, representing a 46% increase compared to the same period in the previous year. The revenue for the period was $657.8 million, showing a significant growth primarily driven by the acquisition of the Pendal Group. The company's total expenses for the period were $522.4 million, reflecting a 75% increase compared to the same period in the previous year. Perpetual also announced a 35% franked ordinary dividend of 65 cents per share to be paid on 8 April 2024, representing a payout ratio of 75% of 1H24 underlying profit after tax.

Executive commentary on 1H24 financial performance

The company's 1H24 financial results reflect the successful integration of the Pendal Group and the continued growth across all segments. The acquisition has significantly contributed to the increase in revenue and expenses for the period. We are pleased with the overall performance and remain committed to delivering sustainable growth and improved shareholder returns over time. The 35% franked ordinary dividend of 65 cents per share demonstrates our commitment to maximizing returns to shareholders within the range of 60% to 90% of underlying profit after tax on an annualized basis.

Outlook and future plans

Perpetual's strategic review to explore the benefits of unlocking additional value for shareholders through the separation of Corporate Trust and Wealth Management businesses and creating a more focused Asset Management business is underway. The company remains focused on delivering synergies and improving net flows in its Asset Management business, maintaining growth in Wealth Management through its differentiated advice model and capabilities, and continuing to demonstrate resilience and growth in Corporate Trust. Perpetual is committed to unlocking benefits from simplifying its business and successfully completing the strategic review to unlock value for its shareholders. The company will continue to provide quarterly business updates on the underlying drivers of its business, the execution of its strategy, and market conditions.