Perpetual Limited reported a 6% year-over-year increase in underlying profit after tax to AUD 217 million for the fiscal year ended June 30, 2026, as the company advances toward the sale of its wealth management division to Bain Capital.
Net profit after tax rebounded to AUD 88.9 million from a loss of AUD 58.2 million in the prior year, while total operating revenue remained broadly flat at AUD 1.37 billion. Diluted earnings per share rose 3% to 186 cents, supported by a 119-basis-point improvement in the cost-to-income ratio to 78%. Operating expenses held steady at AUD 970.3 million.
The company reduced gross debt by 15% to AUD 629 million and improved its gearing ratio to 28.8%, while free cash flow increased by AUD 93 million to AUD 228.5 million. Perpetual’s simplification program delivered annualized savings of AUD 72.6 million as of June 30, 2026, with gross savings for the year totaling AUD 60.8 million. The program’s target for FY 2027 ranges from AUD 70 million to AUD 89 million.
Asset management underlying profit before tax rose 3% to AUD 207.5 million, though net outflows reached AUD 25.1 billion. Total assets under management stood at AUD 224.4 billion as of June 30, down AUD 7.6 billion due to foreign exchange movements. J O Hambro, a subsidiary, managed AUD 33 billion in assets, with a long-term target of AUD 55 billion to AUD 60 billion by FY 2030. Corporate trust underlying profit before tax increased 9% to AUD 98.8 million.
Perpetual recorded a AUD 63.5 million impairment related to its TSW boutique. The company maintained a 70% payout ratio on second-half underlying profit, declaring a final unfranked dividend of AUD 0.63 per share. The stock trades at a dividend yield of 9.07% and a P/E ratio of 11.11, with a 52-week range of AUD 15.10 to AUD 22.15.
The wealth management sale to Bain Capital remains on track for completion in the fourth quarter of 2026, subject to customary adjustments. The transaction includes an upfront cash payment of AUD 500 million, potential performance-based payments of up to AUD 50 million at settlement, and an additional AUD 50 million payable two years later based on accounting and wealth operations. Perpetual has secured required regulatory approvals from ASIC and the ACCC, with court proceedings underway to transfer assets and liabilities.
