Insignia Financial 2024 Half-Year Results

Insignia Financial reported a 1.2% increase in Underlying Net Profit After Tax (UNPAT) to $95.5 million for the first half of 2024.

Crunching the numbers

Insignia Financial 2024 Half-Year Results

  1. Insignia Financial reported a 1.2% increase in Underlying Net Profit After Tax (UNPAT) to $95.5 million for the first half of 2024.

  2. The company experienced a statutory net loss of $49.9 million in the same period, attributed to strategic initiative expenditures and remediation.

  3. Net revenue saw a slight increase of 0.6% to $695.7 million, driven by higher funds under management and administration (FUMA), which rose by 5.4% to $300.6 billion.

  4. An optimisation program is on track to deliver $60-$70 million in benefits for FY24 and aims for $175-$190 million annually by FY26.

  5. Insignia Financial is progressing with its strategic priorities, including the separation of MLC and the transition of MLC Wrap to Expand, expected to complete in April 2024.

  6. The company declared an interim dividend of 9.3 cents per share, payable on April 3, 2024, with a payout ratio of 65% of 1H24 UNPAT.

  7. Remediation provisions were adjusted, with $72.6 million raised during the period, leading to a net funding requirement from corporate cash and debt of $24.8 million after tax and Trustee approved funding.

  8. The company has upgraded its full-year FY24 guidance, expecting a net revenue margin between 45.5-46.0 basis points and an EBITDA margin of 11.8-12.2 basis points.

  9. Insignia Financial is focusing on simplifying its business, enhancing client financial wellbeing, deepening partnerships with advisers and employers, and ensuring a safe and trusted business environment.

  10. The company's strategic acquisitions of ANZ’s Pensions & Investments business in 2020 and MLC in 2021 have positioned it as a leading wealth manager in Australia.

This announcement is a summary of the company approved ASX announcement on 22/2/2024 and is based on facts.