Reflections on PPT result

PPT result, was , IMO, not as good as IFL's result, but saying that, it was still a good result.

The GOOD
1. Revenue increased by 5%, but the really good news was that it was across all segments.
2. Perpetual Private increased PBT by 18.4% and Corporate Trust by 7.6%
3. Perpetual Private continues to grow clients, and FORDHAM is PP leading referral partner
4. Cash on the balance sheet grew by 16%. PPT appear to be building up an acquisition war chest
5. PP revenue gre 6%, expenses fell 3%, FUM revenue margin grew 1 bps
6. PP cost to income ratio fell 3%
7. Perpetual Corporate Trust increased cost to income ratio by 1%
8. Dividend up 4%

The BAD
1. Expenses as a proportion of Revenue dropped 20bp from 63.3% to 63.1%.
2. FUM for Investments revenue margin fell 3 bps to 72 bps, with a sharp decline in H2

The UGLY
1. Net inflows for Perpetual Investments have been neg for the last 2 years.

All up a good result, with PP a standout. PP now has momentum and a strategy to significantly grow this business.

HT1