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 in a suit smiles at the yellow piggy bank he holds in his hand.
Earnings Results

Westpac shares on watch amid $6.99b profit and new buyback

Has the big four bank delivered the goods for investors this year? Let's find out.

Read more »

Woman inspecting packages.
Earnings Results

This top 50 ASX stock is diving 5% despite a strong outlook

Investors were looking for more.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Earnings Results

Macquarie share price sinks despite $1.6b half year profit and new buyback

How did this investment bank perform during the first half? Let's find out.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Earnings Results

Why the BrainChip share price is in the spotlight this week

Today's reaction is in stark contrast to the day of the release.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

2 All Ords ASX healthcare shares making BIG moves on quarterly updates

These two ASX healthcare companies are seeing heavy trading on Thursday.

Read more »

A businesswoman ponders why her boat is sinking in the ocean.
Resources Shares

Lake Resources share price sinks on quarterly cash flow news

Let's take a look at the highlights of the company's Q3 update.

Read more »

Lithium ion batteries
Earnings Results

Needs a recharge: Novonix share price sees red after Q3 earnings

Investors were likely expecting a tad more.

Read more »

chip and tech stocks represented by two computer chips side by side
AI Stocks

Up 237% in 2024, why is the Appen share price racing higher again today?

Investors are bidding up Appen shares again today. But why?

Read more »