IOOF Holdings executes strategic partnership with Bendigo and Adelaide Bank

  • Apr 11, 2019 AEST
  • Team Kalkine
IOOF Holdings executes strategic partnership with Bendigo and Adelaide Bank

IOOF Holdings Limited (ASX: IFL) is a financial services company operating in Australia. It offers its clients financial advice via an extensive network of financial advisers and stockbrokers, portfolio management and administration to employers, as well as other investment management products to suit a variety of investor’s needs.

On April 10th, 2019, IOOF Holdings announced to the market that its subsidiary, Bridges Financial Services Group Pty Ltd, had established a strategic partnership with Bendigo and Adelaide Bank Ltd, concerning the advice servicing rights of the clients of Bendigo Financial Planning Ltd (Bendigo FP). Upon completion of due diligence and other formalities, the agreement will be officially signed on July 31st, 2019.

Accordingly, Bridges would be acquiring the client book and servicing rights of Bendigo FP for a cash consideration of around $ 3 million, and an additional payment to be paid on the first anniversary of completion of the transaction, subject to maintaining a client retention rate as discussed.

Also, Bridges and Bendigo have executed another referral and relationship agreement that requires Bridges to provide financial planning services to Bendigo’s referred clients for an exclusive period. Bendigo FP advisers are anticipated to add approximately $ 1-billion funds under advice and also drive the increase in sales.

Currently, Joint Bridges and Bendigo working groups are underway to plan and implement a smooth transition of clients and staff to Bridges.

On April 4th, 2019, IOOF Holdings also announced some management changes including the appointment of Mr. Allan Griffiths as the independent, Non-Executive Chairman, and departure of the Managing Director, Chris Kelaher, both effective immediately. Mr. Griffiths had been the Acting Chairman since early December 2018 and holds over 30 years of experience in the financial services industry.

IOOF Holdings also announced, on February 19th, 2019, a fully franked dividend of AUD 0.255 with the record date of Wednesday, February 27th, 2019 and payment date of Friday, March 15th, 2019 with respect to the half-year ended December 31st, 2018.

The company delivered solid financial results amidst a difficult first half year ended December 31st, 2018, IOOF posting the statutory net profit after tax (NPAT) at $ 135.4 million, up 200% on the prior corresponding period (PCP) ended December 31st, 2017. The underlying NPAT from continuing operations stood at $ 100.1 million, up 6% on PCP. Besides, the net platform inflows increased by 12% to $ 688 million, and the cost to income ratio also improved by 2% to 52.4%.

During the second quarter of the financial year 2019 ended December 31st, 2018, IOOF witnessed an increase of over 10% in funds under management, administration, and advice (FUMA). The total FUMA at the end of the period were $ 137.8 billion mainly driven by the rise in platform inflows.

On April 11th, 2019, the IFL stock price closed at AUD 6.420, down 0.156%. IFL’s YTD return stands positive at 27.83%.


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