Integration milestones achieved and path set for unlocking growth

Insignia Financial Ltd (ASX: IFL) is pleased to announce net profit after tax of $51 million for the year ended 30 June 2023 (FY23), an increase of 39% on the prior year, and underlying net profit after tax of $191 million, a decrease of 15% on FY22. 

Highlights

• Net profit after tax of $51 million, up 39% on prior year¹
• Underlying net profit after tax² of $191 million, down 15% on prior year, impacted by lower average FUMA and strategic repricing decisions
• Operating expenses down 5% on prior year; $218 million synergy program completed
• Achieved positive net inflow target for FY23: $667 million on a continuing basis³
• Funds under management and administration (FUMA) increased by $4.4 billion (+1.5%) over the year to $295 billion
• Final dividend of 9.3 cps payable on 3 October 2023
• Final phase of 3-year MLC Separation and Integration program confirmed
  - Future state Master Trust Platform selected
  - New Advice Services partnership model announced to drive future Advice profit and growth
  - Second wave of acquisition synergies and cost efficiencies underway
• Strategic refresh announced to drive focus, prioritisation and sustainable growth
  - Improving our clients’ financial wellbeing
  - Deepening our partnerships with advisers and employers
  - Simplifying our business
  - Building a safe and trusted business together

Commenting on the result, Insignia Financial Chief Executive Officer, Renato Mota said: “The past financial year saw us reach important milestones in the integration of MLC, the transformation of our business and the creation of Insignia Financial, providing the foundation for unlocking future growth. 

"FY23 was a year of achievement. A year of delivering on our promises – evidenced by our net funds flow outcomes, simplification, product improvements, and exemplified by a number of awards and client outcomes.

“We are two years into our journey to creating Australia’s leading financial wellbeing organisation, and it is our achievements to date including the accelerated delivery of benefits that created the opportunity for us to refresh our strategy to drive focus and position us to deliver on our ambition.

“While the result was impacted by lower average FUMA following investment market falls in 4Q22 as well as strategic repricing decisions, our reduction in operating expenses highlights the benefits of deliberate strategic decisions, and the achievement of our net positive inflow target demonstrates the strength of our go-forward proposition.”

Outlook

Mr Mota commented, “Our FY23 results demonstrate our continued progress and achievements across our three businesses. We are well positioned for opportunities ahead and have built a business that is adaptable, with a sharpened focus, and will allow us to leverage our size and scale to support more Australians.”

Read a copy of the full ASX announcement

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