Perpetual Limited (ASX:PPT) Reports Half-Year Results with Revenue Growth and Strategic Shifts

February 27, 2025 12:37 PM AEDT | By Team Kalkine Media

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Perpetual Limited (ASX:PPT) Reports Half-Year Results with Revenue Growth and Strategic Shifts — Image source: shutterstock

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Highlights

Perpetual Limited (ASX:PPT) posts a 4% rise in operating revenue, reaching $686.2 million.

The company opts to retain Corporate Trust and Asset Management while considering the sale of its Wealth Management division.

Announces an interim dividend of 61 cents per share with a 70% payout ratio.

Perpetual Limited (ASX:PPT) has released its half-year financial results, highlighting revenue growth and key strategic decisions. The company's operating revenue for the six months ending December 31, 2024, reached $686.2 million, reflecting a 4% increase compared to the previous corresponding period (pcp). Underlying profit after tax (UPAT) showed a 2% increase to $100.5 million, demonstrating steady performance across its business segments. However, net profit after tax (NPAT) dropped by 65% to $12.0 million, largely due to rising costs and operational expenses.

Revenue Growth Amid Higher Costs

The company’s revenue expansion was driven by its three core segments—Asset Management, Wealth Management, and Corporate Trust. These divisions contributed positively to the overall performance despite the impact of increased expenses. The company remains focused on optimizing its operations to maintain growth while addressing cost challenges.

Strategic Review and Business Retention

Following a detailed strategic review, the Board decided against proceeding with a proposed A$2.175 billion transaction with KKR, which involved selling its Corporate Trust and Wealth Management businesses. Instead, the company has chosen to retain its Corporate Trust and Asset Management divisions while considering divestment opportunities for the Wealth Management unit. This decision aligns with its broader objective of streamlining operations and driving long-term value for stakeholders.

Shareholder Returns and Dividend Declaration

As part of its commitment to shareholders, Perpetual Limited (PPT) declared an interim dividend of 61 cents per share. This payout reflects 70% of the company’s UPAT for the first half of 2025. Additionally, the Dividend Reinvestment Plan will remain available, offering shareholders the option to receive newly issued shares without a discount.

Future Outlook

Looking ahead, Perpetual Limited (PPT) aims to focus on strengthening its retained business divisions while exploring strategic alternatives for its Wealth Management segment. With steady revenue growth and a clear direction following the strategic review, the company continues to navigate industry challenges while prioritizing shareholder value.

This latest financial update provides insights into the company’s performance trajectory, demonstrating resilience in revenue generation despite market uncertainties. Stakeholders will closely watch how future decisions shape Perpetual Limited’s (PPT) long-term growth strategy.

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