BT reports doubling of interim profit
BT chief executive Emilio Gonzalez says the "exceptional" performance in the first half reflected improved market conditions.
"Clearly the stronger environment has assisted our business, both domestic and offshore in terms of rising markets, which has also led to growth and an improvement in net inflows," Mr Gonzalez said during BT's first-half results briefing on Wednesday.
Net profit rose 104 per cent to $22.8 million in the six months to March 31, while revenue jumped 44 per cent to $135.5 million.
Higher performance fees and rising management fees also supported the strong lift in net profit.
BT said significant progress had been made in diversifying the business, highlighted by the reduction in Australian equities as a proportion of funds under management from 33 per cent three years ago to 22 per cent currently.
BT, which is majority owned by Westpac, declared an interim dividend of 8¢ per share, fully franked, up from 5.5¢ a share previously.
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BT Investment Management doubled first‑half net profit largely because of improved global and domestic market conditions, which led to rising markets, stronger net inflows, higher performance fees and increased management fees.
Net profit rose 104% to $22.8 million for the six months to March 31, while revenue increased 44% to $135.5 million.
Emilio Gonzalez described the first‑half performance as “exceptional,” saying the stronger environment aided both domestic and offshore parts of the business and contributed to growth and improved net inflows.
BT has diversified by reducing the proportion of Australian equities in its funds under management from 33% three years ago to 22% currently, reflecting a broader mix of assets and geographic exposure.
BT declared an interim dividend of 8 cents per share, fully franked, up from the previous interim dividend of 5.5 cents per share.
The main revenue drivers were higher performance fees and rising management fees, both boosted by the lift in markets and growth in assets under management.
Stronger market conditions helped lift investor sentiment and asset values, which led to growth and an improvement in BT’s net inflows during the first half.
BT is majority owned by Westpac. The article notes BT declared a higher, fully franked interim dividend, but it does not detail how Westpac’s ownership directly affects dividend policy beyond reporting the ownership structure.
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