Pendal reports 32% NPAT decline

Mike Taylor

Managing Editor/Publisher, Financial Newswire

7 November 2022

At the same time as Perpetual finds itself subject to a private equity led takeover bid, its own takeover target, Pendal Group, has reported a 32% decline in net profit after tax to $112.8 million. 

Announcing its full-year results to the Australian Securities Exchange (ASX), Pendal said the profit decline reflected the impact of mark-to-market movements on seed investments year on year while emphasising that underlying earnings per share were up 5% to 50.7 cents per share. 

The board declared a final dividend of 3.5 cents per share fully-franked. 

Pendal chief executive, Nick Good said the company had delivered a solid result in the 2022 financail year with increased underlying profit after tax and underlying earnings per share as well as an improved operating margin. 

“This has been achieved against a backdrop of significant challenges that are buffeting the asset management sector,” he said. 

“We have not been immune to the effects of rising geopoitical tensions and investor concerns about potential inflation-induced recessions. As a result, investors remain cautious, which is cutting asset values and fund inflows worldwide.” 

Good said the year had been a tough one for markets and global investor confidence. 

“Against this backdrop, however, Pendal produced a solid 2022 financial result,” he said.