Bell Financial swings back into profit, ringing up $3.3m for half-year

Bell Financial Group reported a $3.3 million half‑year profit for the six months to June 30, reversing a $1.8 million loss from the same period last year.

Bell says retail investor confidence improved in recent months—partly due to easy global central bank monetary policy—which, together with steady performances from its equity capital markets and wholesale divisions, helped all underlying businesses become profitable for the period.

Yes. Bell Financial declared a fully franked interim dividend of 1 cent a share for the half year.

According to executive chairman Colin Bell, the company’s business model doesn’t work well in bad markets but performs very well in good markets—as seen in 2007 and in recent months—so Bell’s results are closely tied to market strength.

Bell generates revenue from commission income and fees on services such as equity capital markets, portfolio administration, superannuation and margin lending.

Bell Financial has about $22 billion in funds under management, according to the company’s report for the period.

During the period Bell Financial increased its ownership of online broking business Bell Direct to 51.23%.

The results show Bell returned to profitability and paid a small fully franked dividend, driven by stronger markets and improved retail investor confidence. However, the company’s performance is cyclical and closely linked to market conditions, so investors should consider that sensitivity when assessing Bell Financial.