Wealth manager Quilter has recorded a dip in asset growth and profit in H1 2020 amid a challenging environment caused by the Covid-19 crisis.
Key metrics for Quilter in H1 2020
The group’s adjusted pre-tax profit stood at £71m in H1 2020, versus £89m a year ago.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
IFRS profit before tax attributable to equity holders from continuing operations was £46m, compared with a loss of £40m a year ago.
A challenging revenue environment resulted in a decrease in operating margin to 21% from 26%.
On the bright side, net client cash flow (NCCF) increased significantly to £1.1bn from £300m. Integrated net flows remained stable at £1.4bn.
Assets under management/administration (AuMA) reached £107.4bn at the end of June 2020, down 3% compared with £110.4bn at the end of 2019. However, AuMA increased 13% from the £95.3bn figure reported at the end of March 2020.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataQuilter CEO Paul Feeney said: “In response to revenue challenges in the first half of 2020, we pulled hard on the cost lever, both through structural cost reduction via our Optimisation programme and tactically with a planned reduction in discretionary expenditure of around £30 million this year.
“Our cautious outlook with broadly stable market conditions for the remainder of the year means we continue to expect revenue headwinds. As a consequence, we will maintain a firm handle on expenses with a modestly lower second half out-turn for costs anticipated to offset the expected impact from revenue headwinds.”
The firm reaffirmed the proposals despite reporting a decrease in assets under management and administration (AuMA) as net inflows were offset by negative market performance.
AuMA at the end of March 2020 reached £95.3bn, a decrease of 8% from £103.6bn in the prior year.
The firm’s Q1 net inflows were £500m, flat versus the previous year.
