IOOF Holdings Limited (ASX: IFL) will be watched closely by investors today after the diversified financial business reported its financial results for the year ended 30 June 2018.

IOOF Holdings is a financial business that provides financial advice, investment management products, trustee services and platform management & administration services.

Here are some of the highlights from IOOF Holdings’ report:

  • Net revenue increased by 2% to $533.8 million
  • Profit down 24% to $88.3 million
  • ‘Underlying’ profit up 13% to $191.4 million
  • Annual dividends per share increased by 2% to 54 cents
  • Net inflows up 28% to $5.8 billion

According to Bell Potter, the consensus among analysts was an expectation of profit of $187 million, so it appears to have slightly missed this on an underlying profit basis.

The whole financial services industry has been under the spotlight due to the setup of advice and products, with the big bank Commonwealth Bank of Australia (ASX: CBA) being fined. It’s relevant for IOOF because it also operates in that space.

IOOF recently bought Australia and New Zealand Banking Group’s (ASX: ANZ) OnePath Pensions & Investments business and Aligned Dealer Groups for $975 million.

Managing Director of IOOF Holdings, Christopher Kelaher said:

“This has been a very solid year for IOOF. Each of our businesses has seen accelerating profit growth in profitability. We are unique in the industry with our advice-led business model and open architecture and we continue to attract quality advisers into our group – against industry trend.”

The IOOF share price is down by over 15% since the start of the 2018 calendar year.

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