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BTIM reports 44 per cent profit decline
BT Investment Management (BTIM) has reported a 44 per cent decline in net profit after tax to just $12.7 million for the six months ended 31 March, but has described as a satisfactory result in tough conditions.
The company said that the result was slightly better than the range of a 45 per cent to 55 per cent decline announced in a Market update in February.
BTIM chairman, Brian Scullin said the results had been directly affected by the sharp market declines experienced in the six month period as the company's funds under management, revenues and profitability are linked to the markets.
The company said that funds under management stood at $30.6 billion as at 31 March and that this represented a decline of $4.7 billion for the six month period.
However it said that against this backdrop, a strong relative market performance by BTIM funds and a growing balance of cash related products mitigated market falls, resulting in a 14 per cent reduction in FUM compared to a 24 per cent decline in the All Ordinaries Index.
Looking over the horizon, BTIM chief executive, Dirk Morris said the company was cautious on the short-term outlook and suggested its second-half revenue would inevitably reflect the lower opening FUM balance.
He added that further substantial cost savings were becoming harder to deliver.
However Morris said that in the longer-term, underlying superannuation fundamentals remained positive in Australia and the unprecedented scale of government policy stimulus would eventually gain traction.
AUTHOR
Mike Taylor
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