Perpetual (ASX: PPT) – Perpetual Files Results Presentation 35

Perpetual delivered 6 percent earnings growth despite flat revenue in FY26, signalling improved operational efficiency as the company executes its restructuring strategy. Underlying profit after tax reached $217.0 million, up from $204.1 million in FY25, while net profit swung to $88.9 million from a prior-year loss of $58.2 million, driven partly by a tax credit associated with the proposed sale of Wealth Management.

The earnings lift was driven primarily by Corporate Trust, where profit before tax rose 9 percent, and improved Asset Management profitability as cost discipline tightened across the group. The company’s Simplification Program has now delivered $72.6 million in annualised savings, exceeding the original $25–35 million target announced in August 2024 and tracking toward the updated $70–80 million goal by end of FY27. Revenue remained essentially flat at $1,374.2 million, but the company extracted meaningful profit growth through disciplined cost management. Operating expenses fell to $970.3 million from $973.0 million despite continued investment in growth capabilities.

The sale of Wealth Management to Bain Capital Private Equity remains on track for completion in the fourth quarter of this calendar year. The $500 million transaction, plus potential earnout payments, will reshape the group’s revenue mix and unlock further simplification benefits once the separation is complete. Management expects Perpetual to move into a net cash position on a pro-forma basis following the transaction, ending gross debt of $629.3 million, down $109 million during the year.

Asset Management remains Perpetual’s largest division by earnings contribution, generating profit before tax of $207.5 million, but the business continues to face headwinds. Net outflows totalled $25.1 billion in FY26, driven by broader industry trends in active management and product mix impacts. Investment performance was mixed across the boutiques, with Barrow Hanley, J O Hambro, and Perpetual showing strong results in select strategies while Trillium faced ESG-related sentiment challenges.

Corporate Trust delivered 8 percent revenue growth, supported by strong momentum in Australian securitisation and continued strength in custody and digital solutions. The division completed its acquisition of Interfi, expanding loan servicing capabilities for non-bank lenders. Assets under administration across Corporate Trust grew to $1,349.3 billion from $1,272.6 billion.

The company declared a final dividend of 63.0 cents per share, unfranked, taking the full-year dividend to 122.0 cents per share from 115.0 cents. Management indicated a return to partial franking is expected in FY27 as the tax position normalises. Investors should monitor whether Asset Management can stabilise its outflow trajectory, the timing and completion of the Wealth Management divestment, and whether Corporate Trust momentum can offset the larger division’s structural headwinds.

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About Perpetual Limited (ASX: PPT)

Perpetual Limited is an independent financial services group that provides investment management, wealth advice, and corporate fiduciary services globally. The company operates through three segments: Asset Management, which is a global multi-boutique asset manager; Wealth Management, offering financial planning and trustee services to high-net-worth clients; and Corporate Trust, providing fiduciary and digital solutions to the banking and financial industry. The company is headquartered in Sydney, Australia and was founded in 1886.

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