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EQT posts strong growth for its super business
EQT Holdings has reported an exceptional growth across its superannuation business, with funds more tripling from $11.2 billion to $33.6 billion for the year ended 30 June 2021, the company said in an Australian Securities Exchange (ASX) announcement.
Additionally, due to strong growth in the superannuation business, financial reporting lines would be split into three trustee service area businesses going forward including, trustee and wealth, superannuation and corporate.
“This will enable each business to focus and prosper in its areas of strength as well as improving transparency,” EQT’s managing director, Mick O’Brien, said.
“Our superannuation business achieved exceptional growth during the year, with funds more than tripling from $11.2 billion to $33.6 billion. We are now trustee for more than 600,000 members across 15 superannuation funds.”
O’Brien added that the corporate business had seen another strong year, with funds under supervision increasing by $19.1 billion to over $100 billion, while trustee and wealth services had been impacted by record low interest rates and volatile equity markets.
The firm also reported a 43% year-on-year growth in funds under management, administration and supervision (FUMAS) to $144 billion for the year while the revenue rose to 5.9% to $101 million.
At the same time, net profit after tax and earnings per share increased more than 10% , helped by industry demand for an independent fiduciary model, the firm said in the announcement made to the Australian Securities Exchange (ASX).
The shareholders would receive a final dividend of 47 cents per share, bringing the total to 91 cents for the full year, up 1 cent on the prior year.
O’Brien said the trend to outsource fiduciary services helped support the firm’s model and drive momentum across the business.
According to him, the outlook for Equity Trustees was positive.
“Our FUMAS growth should continue to underpin future growth revenue growth, while we scale up areas of the business that show the greatest scope for growth and target new areas such as innovative fund structures, debt, loan and real asset arrangements.”
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