Pendal, formerly BT, posts 45pc rise in half-year profit

A solid rise in funds under management has helped Pendal — formerly BT Investment Management — lift earnings.

Pendal CEO Emilio Gonzalez. Pic: Hollie Adams

A solid rise in funds under management helped Pendal Group lift profits a thumping 45 per cent, in its first interim results since changing its name from BT Investment Management.

Average funds under management jumped 14 per cent to $98.6 billion, driving a surge in management and performance fees.

Pendal (PDL) booked a $114.8m half-year net profit, up from $79m in the previous corresponding period, and lifted its interim dividend by 16 per cent to 22c.

Base management fees rose 18 per cent to $247.9m and Pendal’s margin on those fees rose 2 basis points to 0.51 per cent.

Performance fees surged by 70 per cent to $47.6m.

Chief executive Emilio Gonzalez, who has driven an offshore expansion for the former Westpac unit, said the result marked six years of uninterrupted growth in funds under management, base management fees and dividends.

“This growth has been supported by our strategy of diversifying across markets, expanding our product range and recruiting investment talent,” Mr Gonzalez said.

Pendal shares jumped 86c at the open to be trading around $10.07.

More to come