Win Big With Investment In Financial Stocks – 3 Stocks Under Focus: HUB, NAB, JHG

The economy section made up of firms and entities that are engaged in delivering financial solutions and services to retail as well as commercial customer base is known as the financial sector. A large part of revenue of this sector comes from mortgages and loans. The financial sector of any economy depicts the health of the economy, stronger the financial sector is, healthier the economy and vice versa.

The Australian financial sector is a vital component of the economy and is characterised by a sophisticated environment. Some of the factors that give boost to the Australian financial sector are:

• A strong regulatory system
• Adoption of new technologies in Australia is growing and leading to developments in the financial sector.
• Australia has the fourth-largest pool of investment fund assets, globally and the largest in the Asian region.

We will now discuss three financial stocks that are categorised under the financial sector on ASX.

HUB24 Limited (ASX: HUB)

HUB24 Limited (ASX: HUB) was established by a strong team with a solid background of delivering market solutions in the financial services space. The company, which started its operations in 2007, offers a broad range of investment options, with enhanced transaction and reporting solutions, under its investment and superannuation platform. Its client base includes inventors such as associations, companies, trusts, individuals, or self-managed super funds.

On 10 October 2019, HUB released a market update, unveiling that the company will hold its annual general meeting on 11 November 2019, considering resolutions

• Remuneration report
• Re-election of director – Bruce Higgins
• Re-election of director – Ian Litster
• Approval of issue of options and performance rights to Andrew Alcock
• Increasing the maximum aggregate remuneration of non-executive directors
• Adoption of new constitution

Recently, the company made several announcements related to change in substantial holdings and director’s interest, which can be read here.

FY2019 Group Revenue Up 15 Per Cent

On 27 August 2019, the company published financial results for FY2019 for the period closed on 30 June this year. Below are few pointers from the results:

• The company achieved record annual net inflows of $3.9 billion, up 61 per cent year-on-year
• Group revenue surged by 15 per cent to $96.3 million
• Gross profit of the company soared by 33 per cent to $45.4 million on pcp.
• Funds under administration stood at $12.9 billion at the end of June 2019.
• A final unfranked dividend of 2.6 cents per share was announced by the company, scheduled for payment on 18 October 2019.
• The full-year dividend came at 4.6 cents per share, up by 31 per cent on pcp.

Source: Company’s Report

FY2019 has been characterised by consistent product and investment innovation. The addition of Challenger annuities to the platform helped the ConnectHUB investment, which offers seamless data integration from external providers. The company is continuing to build its ConnectHUB solution and is expecting to launch further products during FY2020.

Stock Performance

The stock of HUB closed the day’s trading at $11.780 on ASX on 10 October 2019, down by 0.675 per cent from its previous closing price. The company has a market cap of $743.31 million and approx. 62.59 million outstanding shares. The 52-week high and low value of the stock is at $15.550 and $10.130, respectively. The stock has generated a negative return of 19.92 per cent in the last six months and a positive return of 2.15 per cent on a year-to-date basis.

National Australia Bank Limited (NAB)

National Australia Bank Limited (ASX: NAB) provides financial, banking and related services. NAB works with small, medium to large size businesses and funds critical infrastructure such as hospital, schools and roads.

On 10 October 2019, the bank announced to have received two resolutions - Amendment to the Constitution and Transition Planning Disclosure - under section 249N of the Corporations Act 2001 (Cth) for consideration at its Annual General Meeting (AGM) on 18 December 2019.

Quarterly Dividend Distribution

In another market update on 8 October 2019, the company unveiled that it would distribute $1.0102 as a dividend for quarter ending 6 January 2020 with 27 December 2019 as ex-date and 7 January 2020 as payable date and a total distribution rate of 4.0519 per cent per annum.

Additional Costs for Customer-Related Remediation

On 2 October 2019, the company announced additional costs for customer-related remediation and alterations in software capitalisation policy worth $1,180 million after tax. As a result, cash earnings during the second half of the year are expected to reduce by $1,123 million after-tax.

New Group CEO and MD

On 20 September 2019, the company unveiled the start date for Ross McEwan as Group Chief Executive Officer and Managing Director of the bank on 2 December 2019. Meanwhile, the bank announced that Mr Philip Chronican, who is the interim Group CEO, is expected to start handling responsibilities as the Chairman of the Board of Directors from 15 November 2019.

The Q3 FY2019 financial results for the bank can be read here.

Stock Performance

The stock of NAB settled at $27.950 on ASX on 10 October 2019, down 0.392 per cent from its previous closing price. The company has a market cap of $80.9 billion and approx. 2.88 billion outstanding shares. The 52-week high and low value of the stock is at $30.00 and $22.520, respectively. The stock has generated a positive return of 14.11 per cent in the last six months and a positive return of 18.75 per cent on a year-to-date basis

Janus Henderson Group Plc (ASX:JHG)

Janus Henderson Group Plc (ASX:JHG), headquartered in London, is an asset management company, offering investment solutions, such as equities and fixed income.

Update on Number of Securities

On 1 October 2019, the company released a notice regarding update of number of securities quoted on ASX, voting rights and capital. The company unveiled that on 30 September 2019, its capital consisted of 187,486,613 shares with voting rights. The company holds nil shares in the treasury on the announcement date of this notice.

AUM Reaches US$359.8 Billion for Q219

On 31 July 2019, the company announced 2Q 2019 financial results for the period ended 30 June 2019, unveiling

• The company’s three-year investment performance improved in 2Q19.
• Asset Under Management (AUM) of US$359.8 billion reflected impact of strong markets, which was partially offset by net outflows during the quarter.
• The company reported adjusted EPS of US$0.61
• The company declared a US$0.36 per share dividend and completed approximately US$75 million of share buyback.
• Cash and ash equivalents of the company decreased by 1 per cent, as cash flow generation was offset by capital return.

Source: Company’s Report

Stock Performance

The stock of JHG closed at $29.940 on ASX on 10 October 2019, down by 0.499 per cent from its previous closing price. The 52-week high and low value of the stock is at $36.740 and $26.110, respectively. The stock has generated a negative return of 14.42 per cent in the last six months and a positive return of 2.78 per cent on a year-to-date basis. The annual dividend yield of the stock is 6.78%.

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