Bell records a sound turnaround

One of the country's biggest stockbrokers, Bell Financial, has posted a $3.3 million half year profit, turning around a $1.8 million loss from this time last year.

By InvestSMART · 21 Aug 2013

By InvestSMART ·
21 Aug 2013

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One of the country's biggest stockbrokers, Bell Financial, has posted a $3.3 million half year profit, turning around a $1.8 million loss from this time last year.

The broker said retail investors had become more confident in recent months - partly as a consequence of easy global central bank monetary policy - and this had helped turn the company's fortunes around, with all underlying businesses becoming profitable in the six months to June 30.

This included a "steady performance" from the equity capital markets and wholesale divisions.

The company has declared a fully franked interim dividend of 1¢ per share.

Bell Financial chairman Colin Bell said in April the company's business model did not work well in bad markets but performed "very well in good markets as we saw in 2007 and [as we] have had a glimpse of in recent months".

Since then, the market has kept performing strongly.

Bell Financial's ownership of online broking business Bell Direct rose to 51.23 per cent during the period.

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Frequently Asked Questions about this Article…

What half‑year profit did Bell Financial report and how does that compare to last year?

Bell Financial reported a $3.3 million half‑year profit, a turnaround from a $1.8 million loss in the same period last year.

What was the reporting period for Bell Financial’s results?

The results cover the six months to June 30, as stated in the company’s announcement.

Did Bell Financial pay a dividend for the half-year, and how much is it?

Yes. Bell Financial declared a fully franked interim dividend of 1¢ (one cent) per share for the half‑year.

What factors did Bell Financial cite for its profit turnaround?

The company said stronger retail investor confidence—partly driven by easy global central bank monetary policy—helped drive the turnaround, with all underlying businesses becoming profitable in the six months to June 30.

How did Bell Financial’s equity capital markets and wholesale divisions perform?

Those divisions delivered a steady performance during the period, contributing to the overall profitability reported by the broker.

Has Bell Financial changed its ownership stake in Bell Direct?

Yes. During the period Bell Financial’s ownership of online broking business Bell Direct rose to 51.23%.

What did Bell Financial’s chairman say about how the business performs in different markets?

Chairman Colin Bell said in April that the company’s business model doesn’t work as well in bad markets but performs very well in good markets, citing strong performance in 2007 and a recent glimpse of similar conditions.

What does the article say about recent market conditions and their impact on Bell Financial?

The article notes the market has continued to perform strongly since the chairman’s comments, and that stronger market conditions and retail investor confidence helped Bell Financial return to profitability.