IOOF (ASX:IFL) share price jumps as profit surges 19%

Shares in the Aussie wealth manager are on the move today

| More on:
A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The IOOF Holdings Limited (ASX: IFL) share price is climbing in early trade after the wealth manager's latest full-year results.

IOOF share price on watch as profit jumps 19%

Some of the key takeaways from the IOOF result include:

  • Revenue up 31% on the prior corresponding period (pcp) to $770 million
  • Group funds under management, advice and administration (FUMA) of $453 billion including 15% organic growth
  • Underlying net profit after tax (UNPAT) up 19% on pcp to $147.8 million
  • Final franked dividend of 11.5 cents per share, including a 2 cents per share special dividend

The IOOF share price is climbing higher on Thursday following the latest full-year result.

What happened in FY21 for IOOF?

The MLC acquisition was completed in May 2021 and represents a major strategic pillar for IOOF. IOOF reported its synergy run-rate of $12 million per year was achieved by 30 June and remains on track to deliver $80 million to $100 million by the end of FY22.

The company's Evolve21 migration saw over 38,000 accounts transferred and is on track to complete by December 2021.

IOOF reported net inflows of $1.1 billion into its Portfolio and Estate Administration business with a turnaround in net flows into Investment Management in Q4 2021.

The IOOF share price fell 7.6% lower throughout FY21 despite climbing steadily higher in calendar year 2021.

What did management say?

IOOF CEO, Renato Mota, had the following to say about the full-year result:

This year has been transformational with the successful completion of the MLC acquisition on 31 May.

The increase in our revenue and UNPAT evidences our commitment to growth, both through transformation as well as benefits of recent acquisitions. The MLC acquisition is proceeding well and our integration plans remain on track.

Through the transformation of our business, we expect to deliver synergy benefits during FY22 and beyond.

Longer-term, we continue to see significant opportunities through the expanding addressable market and changing demographies which are increasingly driving demand for our quality financial wellbeing advice, contemporary administration services and expanded investment capabilities.

What's next for IOOF and its share price?

IOOF outlined some key priorities for the current financial year. These include delivering annualised run-rate synergies of $80 million to $100 million from the MLC acquisition and completing its product and platform review.

The IOOF share price has climbed 43.1% higher in 2021 and is outperforming the S&P/ASX 200 Index (ASX: XJO) by 30.4% this year.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

Up 74% in 2024, why is this ASX 200 stock rallying today?

Recurring revenues continue to grow.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

Guess which ASX All Ords share is soaring on 21% FY 2024 growth

Investors are piling into the ASX All Ords share today. Let’s find out why.

Read more »

Girl sliding down on snow with arms spread out.
Earnings Results

Elders shares on ice for a $475 million acquisition after profits plunge 55%

What on earth is going on with Elders shares today?

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Energy Shares

This ASX 200 mining stock just reported a 40% earnings jump

Investors appear pleased with this miner's performance during the first quarter.

Read more »

Business people discussing project on digital tablet.
Earnings Results

2 ASX All Ords shares surging over 10% on strong results

Investors are buying these shares in response to strong results this morning.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Male building supervisor wearing high vis vest and hard hat stands and smiles with his arms crossed at a building site
Industrials Shares

This $23 billion ASX 200 stock is surging 6% while the market sinks. Here's why

This ASX 200 stock is shrugging off the wider market sell down today and racing higher. But why?

Read more »