Funds manager Perpetual has more than doubled its annual net profit as the company's investments benefitted from improving market conditions.
Perpetual reported a net profit of $90.5 million for the year to June 30, up from $37.7 million in the previous corresponding period.
The firm declared a fully franked final dividend of $1.05, taking the full year dividend to $2.10, up from 99.8 cents in the prior year.
Macro-economic conditions in the 2010 financial year improved significantly on the previous year, underpinning stronger equity and credit markets, Perpetual said.
"Perpetual was able to improve its operating leverage to the markets by preserving the benefits of the cost savings initiatives undertaken in the 2009 financial year," it said in a statement.
"This ensured the more positive market environment had a beneficial impact on the group's financial results."
Market volatility returned to financial markets toward the end of the financial year, however, and the outlook was uncertain, Perpetual said.
Underlying profit for the year to June was $72.8 million, up 11 per cent from $65.7 million in the previous corresponding period.
The group’s average funds under management and funds under advice through the year, Perpetual’s key drivers of profit, increased by seven per cent and 17 per cent respectively.
At June 30, funds under management were $26.9 million, up three per cent from a year earlier, and funds under advice were $8.3 billion, up 22 per cent.
Perpetual’s expenses in the year rose 15 per cent from the previous corresponding period to $41.7 million, due to investments aimed at expanding its private wealth and mortgage services businesses.
‘‘As we continue to integrate the businesses acquired during the year, Private Wealth will be well placed to capture the opportunities created by the continued growth and development of financial advice in Australia and target increasing returns as a result,’’ chief executive David Deverall said.
AAP