Chris Wyke
MA Financial’s Asset Management business underpinned its first half results, delivering 79% of the Group’s EBITDA (before corporate costs) off the back of record first half gross fund inflows of $953 million, up 66% on 1H22.
The diversified financial services group’s overall first half result highlighted strong growth in its recurring revenue streams, the record first half fund inflows, ongoing growth in Finsure and accelerating loan volume growth for MA Money. The challenging macro environment led to lower transactional activity impacting performance fees and corporate advisory revenue.
Investor interest in the Group’s Private Credit funds and a strong initial raising for the MA Marina Fund were behind the acceleration in Asset Management inflows. AUM climbed to $8.9 billion at 30 June 2023.
Business highlights
- Record first half funds inflows
- Expansion and success of the private credit business – MA Financial’s credit funds are among Australia’s fastest growing
- Ongoing growth in Finsure and accelerating loan volume growth for MA Money
Financial results
- Underlying revenue, down 13% on 1H22 to $127 million
- Underlying earnings per share (EPS) down 13.6% on 1H22 to 15.2 cents (Statutory EPS down 19% to 10.5 cents)
- Fully franked interim dividend of 6 cents per share declared, in line with 1H22
Outlook
The underlying momentum in the business positions MA Financial for strong future growth.
Joint CEOs Julian Biggins and Chris Wyke said: “We are very pleased with the underlying momentum in the business which positions MA Financial for strong future growth. The composition of our earnings improved significantly with growth in recurring revenue and expense management largely offsetting the decline in performance fees.
“Despite the challenging economic backdrop, we continue to see the benefits of our diversified business model, and our intentional strategy to build a business that can deliver for investors through the economic cycle.
The expansion and success of our Private Credit business is very pleasing. MA Financial’s credit funds are among Australia’s fastest growing. Advisors and investors continue to value our expertise in originating and managing credit assets, highlighted by the 74% growth in the Assets under Management of our Private Credit Funds over the last 12 months. We believe Private Credit investing will continue to benefit from demographic and structural growth drivers for many years.”