The IOOF Holdings Limited (ASX: IFL) share price skyrocketed today, closing 16.42% higher at $6.17. This comes after the company posted a solid set of interim results despite a bruised reputation after the financial services provider was slammed by the Royal Commission.
IOOF achieved a 200% increase in statutory net profit after tax (NPAT) driven by one-off items including a $34 million profit from the sale of the company’s corporate trust business.
The numbers were also solid on an underlying basis, with 6% growth in underlying NPAT. Acting CEO, Renato Mota said that the result was a reflection of the strength of the company’s diversified business model. The acquisition of ANZ Wealth Management also benefited the result.
The company acknowledged that trust needed to be rebuilt and changes made that will lead to better outcomes for clients. “IOOF is fully supportive of Royal Commission recommendations that will lead to a better, stronger financial services industry for the benefit of all Australians,” Mr Mota said.
IOOF hasn’t yet felt the full impact of the Royal Commission. The company signaled additional compliance and regulatory costs in the range of $20 – $30 million which will be incurred commencing immediately and into FY20.
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