Perpetual FY26 Underlying Profit After Tax Up 6% to $217.0m

Perpetual Limited (ASX:PPT) reported underlying profit after tax of $217.0 million for the year ended 30 June 2026, up 6 per cent on FY25, and statutory net profit after tax of $88.9 million against a loss of $58.2 million in FY25. The release states that underlying profit after tax attributable to equity holders of Perpetual Limited is a non-IFRS measure calculated in accordance with ASIC's Regulatory Guide 230 and reconciled in Appendix B of the operating and financial review. Operating revenue of $1,374.2 million was stable year on year, with revenue growth in Corporate Trust offset by lower Asset Management and Wealth Management revenue. Perpetual attributed the movement in statutory profit to stronger underlying earnings, a reduction in significant items despite the impairment recognised during the year, and the recognition of tax credits ahead of completion of the sale of Wealth Management. Post-tax significant items were $128.1 million against $262.4 million in FY25 and related primarily to transaction and separation costs associated with the proposed sale of Wealth Management, Simplification Program costs, a $63.5 million non-cash impairment relating to TSW, non-cash amortisation of acquired intangibles and a tax expense credit. The company said the TSW impairment relates to the carrying value of goodwill and does not affect liquidity, banking covenant compliance or underlying profit after tax. The board determined an unfranked final dividend of $0.63 per share, payable on 2 October 2026, taking total FY26 dividends to $1.22 per share, which the company says represents a payout ratio of 65 per cent of underlying profit after tax and is in line with the board's policy of targeting a payout ratio within a range of 60 to 90 per cent of underlying profit after tax on an annualised basis.

By division, Asset Management underlying profit before tax was $207.5 million, up 3 per cent, on revenue down 3 per cent to $880.5 million, which Perpetual said was primarily due to unfavourable foreign currency movements; total assets under management were $224.4 billion at 30 June 2026, down 1 per cent, and the company said 51 per cent of strategies outperformed their benchmarks over the three years to that date. Corporate Trust underlying profit before tax rose 9 per cent to $98.8 million, with total funds under administration of $1,349.3 billion, up 6 per cent, and Digital and Markets assets under administration up 14 per cent to $638.6 billion. Wealth Management underlying profit before tax fell 15 per cent to $44.0 million and, having met the accounting criteria to be classified as held for sale, is presented as a discontinued operation across the financial statements. The Simplification Program delivered an additional $28.5 million of annualised cost savings during the year for $72.6 million since inception in August 2024, ahead of the $60 million targeted for FY26 and within the group's target of $70 million to $80 million by 30 June 2027, subject to the successful implementation of remaining initiatives. Gross debt was $629.3 million at 30 June 2026 against $738.5 million a year earlier, which the company said reflects organic net debt repayments of $109.2 million during the year and favourable foreign exchange movements. Perpetual said the sale of Wealth Management to Bain Capital is on track to complete within the final quarter of the 2026 calendar year subject to satisfaction or waiver of the remaining conditions precedent, while stating there can be no certainty as to the ultimate timing or completion of the transaction. Separately, the company said that since its announcement of 29 July 2026 it has entered a non-disclosure agreement with Windflower Pte Limited, an entity it understands to be indirectly controlled by EQT AB, and is providing access to limited, non-public information on a non-exclusive basis to determine whether an improved proposal can be formulated, with no certainty that the process will result in a binding offer or that any transaction will eventuate.