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Total Operating Revenue: $697.9 million, up 2%. Underlying Profit After Tax: $112.7 million, up 12%. Statutory Profit After Tax: $53.9 million. Interim Dividend: $0.59 per share, unfranked. Diluted EPS on Upa: $0.97 per share, up 9%. Annualized Savings Delivered: $60 million, targeting $70 to $80 million by FY27. Net Outflows: $10 billion, with $22 billion of gross inflows and $32 billion of gross outflows. Assets Under Management (AUM): $71 billion in Australia. Wholesale Channel Net Inflows: $1.5 billion. Institutional Channel AUM: $25 billion. Perpetual Diversified Income Active ETF AUM: $215 million as of December 31, 2025. Perpetual Credit Income Trust AUM: Over $800 million. Free Cash Flow: $33.8 million for the half. Total Cash: $325.6 million as of December 31, 2025. Funds Under Advice: $21.9 billion, up 6%. Corporate Trust UPBT Growth: 11% CAGR from 2019 to 2026. Expense Growth: 1% controllable cost growth. Significant Items: $58.8 million, predominantly non-cash.

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Release Date: February 26, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Perpetual Ltd (PPTTF) achieved a 2% increase in total operating revenue, reaching $697.9 million for the first half of 2026. Underlying profit after tax rose by 12% to $112.7 million, demonstrating strong financial performance. The company has made significant progress on its simplification program, delivering $60 million in annualized savings and is on track to achieve $70 to $80 million by FY27. Corporate Trust continues to deliver strong growth across all three business segments, benefiting from robust securitization markets and client growth. The asset management division saw pockets of strong performance, with 54% of strategies delivering outperformance over a three-year timeframe.

Negative Points

Perpetual Ltd (PPTTF) reported a statutory profit after tax of $53.9 million, which is lower than the underlying profit. The company experienced net outflows of $10 billion during the half, primarily in US, global, and international equity capabilities. The wealth management division's underlying profit before tax decreased due to expense growth, despite showing resilience. The sale process of the wealth management business is complex and has taken longer than expected, with no certainty of a binding agreement. JO Hambro's international global select strategy continues to face net outflows, impacting the overall performance of the asset management division.

Story Continues

Q & A Highlights

Q: Can you provide more details on the delay in the sale of the wealth division and the potential inclusion of the brand in the transaction? A: Bernard Reilly, CEO, explained that the sale process is complex due to the need to untangle the wealth division from the broader organization, particularly its integration with corporate trust. The focus is on delivering the best outcome for shareholders. Regarding the brand, Reilly noted that it is an important consideration but did not comment on media speculation.

Q: The guidance for operating expenses has been upgraded to 1-2% from 2-3%. Is this primarily due to currency factors, and is there potential upside risk? A: Suzanne Evans, CFO, confirmed that currency is a significant factor in the revised guidance. The company remains vigilant on expenses and expects to deliver within the new guidance range, supported by benefits from the simplification program.

Q: What is the progress on restoring JO Hambro to its heritage strength, given the net outflows from the international global select strategy? A: Bernard Reilly, CEO, acknowledged the ongoing outflows but emphasized a focus on client retention, particularly in the US. While performance remains a challenge, other global and emerging market strategies are seeing inflows, providing some offset.

Q: How are the distribution efforts progressing in the US and UK compared to Australia? A: Bernard Reilly, CEO, highlighted that the Australian distribution team is more advanced and has delivered positive flows. The international distribution efforts continue, with a focus on intermediary and wholesale spaces. The launch of Barrow Hanley's strategy in the UK is an example of leveraging the multi-boutique model.

Q: Can you elaborate on the $183 million in seed capital and its deployment across strategies? A: Suzanne Evans, CFO, explained that the seed capital is diversified across more than 20 capabilities, including investments in Barrow Hanley's CLO business. The focus is on recycling capital and supporting innovation without materially increasing the current pool.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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