Perpetual weighed down by wealth management business

Perpetual Group recorded "stable" revenue of $1.4 billion in FY26, as growth was affected by lower asset and wealth management revenue.

Operating revenue of $1.4 billion was stable year-on-year, with revenue growth reflected by its corporate trust division, while net profit after tax (NPAT) was $88.9 million, up from the$58.2 million loss reported in FY25.

Underlying profit before tax (UPBT) for corporate trust was $98.8 million, 9% higher than FY25. Funds under administration (FUA) was $1.3 billion as at 30 June 2026, up 6% from the previous corresponding period.

Digital and markets' assets under administration (AUA) increased 14% over the period to $638.6 billion.

The asset management business performed moderately reporting UPBT of $207.5 million, up 3% on FY25.

Wealth management underperformed, reporting UPBT of $44 million, down 15% on FY25.

The group said the underlying earnings, a reduction in significant items, and the tax credits ahead of the completion of the sale of its wealth management business reflected the strong performance.

Additionally, it has determined a final dividend of 63 cents per share, unfranked, bringing the total dividends for FY26 to $1.22 per share.

Commenting on the results, Perpetual chief executive and managing director Bernard Reilly said despite mixed market conditions FY26 wasa "positive year".

"We delivered strong earnings growth and improved profitability against a backdrop of geopolitical uncertainty and corporate change, highlighting the benefits of our diversified business model," Reilly said.

"Corporate trust delivered another year of consistent growth across all three of its business lines, while asset management improved earnings, supported by stronger equity markets and continued cost discipline."

He also highlighted the significant progress on its simplification program during the year, delivering an additional $28.5 million in annualised cost savings.

"Our simplification program has delivered more than $70 million in annualised cost savings to date, well ahead of our aim for FY26 and already within our FY27 target range," he added.

Reilly said the company is prioritising the completion of the sale of its wealth management business moving forward.

"Following completion, Perpetual intends to focus on its two highly complementary businesses, asset management and corporate trust. Together, these businesses are expected to provide shareholders with a resilient earnings base through market cycles, a stronger balance sheet and improved capital flexibility," he said.

"We have a clear set of priorities for our two businesses, and we are confident in our strategic direction. Our focus remains to deliver a simpler, stronger and more focused business, positioned to provide sustainable growth and long-term value for our shareholders."

The business also provided an update on EQT AB's takeover proposal, stating that it has entered into a non-disclosure agreement with the group but reaffirmed there is no certainty that the process will result in a binding offer, or any transaction will eventuate, at the current stage, advising shareholders do not need to take action at this time.

Perpetual has rejected Swedish investor's offer a second time last month following the initial bid of $21.64 per share.