IOOF eyes banks as it looks to expand
Financial services firm IOOF Holdings is on the hunt for acquisitions to add to its growing team of advisers and the billions of dollars it manages.
IOOF shares rose six per cent to a two-year high of $10.70 after it announced a 16 per cent drop in profit from its continuing operations to $116 million, and steady revenue of $908 million.
The company attracted 33 new advisers in the year to June 30, adding $976 million to its inflows, and its funds under management of $115 billion on June 30 were up $10.8 billion from a year ago.
Managing director Christopher Kelaher said the company hoped to grow that new adviser figure to around 50 over the next six months, counter to the industry trend.
IOOF expects its purchase of National Australia Bank's National Australia Trustees business to be finalised in the next six months, subject to regulatory approval, and he said the company is looking at further acquisitions.
"It's fair to say that if you were looking at the universe in the wealth management sector, whether they be banks or otherwise, we would be active in looking at them right now," Mr Kelaher told AAP.
"At the moment with the negative sentiment on some of the other larger institutions I think we're in a very good spot."
IOOF's annual net profit of $116 million was down 41 per cent on the previous year, when it sold the Perennial Fixed Interest and Perennial Growth Management parts of its business to the Henderson Group.
IOOF FOCUSSED ON GROWTH PROSPECTS
* Profit from continuing operations down 16pct to $116m
* Revenue steady at $908 million
* Final dividend up one cent to 27 cents, fully franked
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