2019 was another successful year for Bell Financial Group. Our various revenue streams grew strongly, our Funds under Advice (FUA) are at record levels and our closing share price on 31 December was 40% higher than a year ago.
All businesses within the Group were again profitable, with our Equity Capital Markets (ECM) division making a notable contribution.
In August we completed the acquisition of two structured loan products (Equity Lever and Geared Equity Investments) and the associated sales and product development teams from Macquarie Bank.
The acquisition increased the size of Bell Potter Capital’s (BPC) loan book to almost $550 million, and significantly increases direct sales access to the Independent Financial Planners channel, in addition to providing new products for our stockbroking clients. We expect the acquisition to have a significant impact on BPC’s revenues in 2020.
We continue to invest in the development of our proprietary platforms and systems to achieve greater efficiency, provide better client service and access further cost synergies.
We are preparing for the Group to provide third party clearing services in the Australian Equities and Derivatives market.
Key Highlights
Revenue ($M)
2019 Revenue grew 15.7% year on year resulting in a Compound Annual Growth Rate (CAGR) of approximately 10% over the last five years.
NPAT ($M)
Similarly our Net Profit after Tax (NPAT) has grown consistently over the five year period with 2019 producing another strong result with NPAT of $32.4 million, up 33% year on year and a five year CAGR of 19.6%.
Funds Under Advice ($B)
Funds under Advice (FUA) closed the year at $58.4 billion up 25% on 2018. The increase reflects market movements over the year, and strong growth in internal Products and Services including Portfolio Administration, Superannuation, Cash and Margin Lending.
Platform, Product & Service Fee Income (PP&S)($AM) 2015–2019
Our various Platforms, Products and Services continue to be a priority and a focus for our commitment to ongoing investment. In 2019 revenues for the various platforms, products and services grew by 18.6% to $61.8 million representing 24% of total Group revenues.
Earnings Per Share (Cents)
Earnings per Share (EPS) presents a similar growth story. 2019 EPS of 10.2 cents per share was up 21% year on year and represents a five year CAGR of 13.25%.
Dividend Paid ($M)
Growth in fully franked dividends over a five year period is consistent with growth in earnings.