Netwealth FUA up 12.2% in 1H23

Oksana Patron

16 February 2023

ASX-listed platform provider, Netwealth has reported a 12.2% growth in funds under administration (FUA) to $62.4 billion at the end of December 2022 (1H 2023), helped by net inflows of $5 billion and positive market growth of $1.7 billion.

The company said that as of February 2023, the FUA stood at $65.1 billion while funds under management (FUM) increased by 10.4% to $14.4 billion at the end of December.

Managed accounts FUM, which grew 9.5% for the same period $12.2 billion, were helped by net inflows of $0.9 billion for 1H 2023.

At the same time, total income of $102.8 million grew by $16.3 million and platform revenue amounted to $99.8 million representing an 18% growth over the prior corresponding period.

Netwealth also said that during a reported period, it increased its headcount with an additional 27 roles added, compared to 55 roles in 1H 2022, with 19 new roles being created in technology teams.

“The largest increases in non-employment expenses during 1H 2023 compared to the prior period were in information technology and communications ($3.3 million), product, marketing and travel and entertainment ($1.5 million),” the firm said.

“IT and communications expense increase primarily relates to our migration to the cloud and upgrading workflow, security and CRM/contact systems. We have also increased our spending in marketing and advertising, travel and entertainment as the economy re-opens post Covid-19.

“For the 2H 2023, we expect non-headcount expenses to stay comparable to those of the 1H 2023. Additionally, we anticipate that our employee growth will be consistent with what we saw in the first half of 2023.”

The board also declared a fully franked interim dividend of 11 cents per share totalling $26.8 million for 1H 2023.