IOOF Holdings Limited (ASX: IFL) today announced a leadership change as part of its growth strategy to focus on restoring trust and accelerating change in the interests of better client outcomes.
The acting Chairman since early December last year, Mr Allan Griffiths has been unanimously elected by the Board to take the role of permanent, Non-Executive Chairman with immediate effect.
With over 30 years of experience in the financial services sector, Mr Griffiths has been Chief Executive Officer of Aviva Australia and Managing Director South Asia at Aviva Asia Pte Ltd.
IOOF’s new Chairman, Mr Allan Griffiths, stated that he is committed to restoring trust will all the stakeholders of the company while bolstering the pace of change in respect of culture, governance, and the resetting of relationships with stakeholders.
The announcement further disclosed the resignation of long-standing Managing Director Chris Kelaher. Mr Kelaher led IOOF at the position of its Managing Director for the last 10 years and has been accredited for building the right scale in the business with transformative, value-accretive acquisitions.
As per the company’s information, Mr Kelaher’s resignation is applicable with effect on the basis of leave arrangement prior to employment ceasing on 2 July 2019. The company informed that he is entitled to receive payment of $1,273,379 in lieu of his contractual notice period plus accrued leave entitlements.
Discussing the Board’s approach to leadership of the company, Mr Griffiths said, that the succession planning has been a key aspect to the company in the robustness of its future plan. On its basis, Renato Mota was appointed to the role of Acting CEO in December. At that time, the Board also prioritised to assess what is in the best interests of the company relating to the leadership in the new financial services environment.”
The company further confirmed that Renato will continue in the role of acting Chief Executive Officer of the company since the company is in the process of finalising succession planning. In the role of Acting CEO, Renato has driven the transformation program to shape IOOF’s business to be fit-for-purpose in the new financial services environment.
For the first half-year of Fiscal 2019, IOOF Holdings reported as high as 200% growth in statutory net profit after tax to $135.4 million, reflecting one-off non-recurring items, including $25 million recoveries of amounts paid in settlement of litigation. Its Underlying net profit after tax (NPAT) from continuing operations were $100.1 million, up 6 %, in 1HFY19.
The group also achieved 12% growth in net platform inflows of $688 million and FUMA increased by 10%, reflecting the favourable impact of the ANZ Wealth Management Aligned Dealer Group acquisition.
IFL stock price declined by 1.538% to last trade at $6.400 on 4 April 2019. The stock has closed at a price to earnings multiple of 12.790x with a market capitalisation of $2.28 billion.
Over the past 12 months, the stock has witnessed a negative price change of 35.19% despite the upsurge of 27.95% recorded in the past three months.
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