• Perpetual Limited's underlying profit after tax (UPAT) for the first half of 2025 was $100.5 million, while net profit after tax (NPAT) was $12.0 million.
• UPAT increased by 2% compared to the first half of 2024, driven by growth in Asset Management, Wealth Management, and Corporate Trust.
• Revenue for the period was $686.2 million, a 4% increase from the first half of 2024, with contributions from all three business lines.
• Expenses totaled $543.1 million, 4% higher than the first half of 2024, due to increased variable remuneration and investments in technology and compliance.
• The Board has announced an interim unfranked ordinary dividend of 61 cents per share, representing a 70% payout ratio of 1H25 UPAT.
• A Scheme Arrangement with KKR for A$2.175 billion was terminated after ATO and Independent Expert feedback, leading Perpetual to focus on business separation and cost reduction.
• Asset Management's AUM was $230.2 billion as of December 31, 2024, driven by market improvements and foreign exchange rates, offset by $3.4 billion in net outflows.
• Wealth Management's funds under advice (FUA) reached $20.6 billion, an 8% increase from the first half of 2024, with flat net flows.
• Corporate Trust's funds under administration (FUA) totaled $1,250.2 billion, a 4% increase from the first half of 2024, driven by growth in public RMBS and ABS segments.

Score: 5

Explanation: The sentiment is neutral. While revenue and AUM/FUA have increased, the significant drop in NPAT and the termination of the KKR deal introduce uncertainty. The focus on cost reduction and business separation suggests a defensive posture.

• Perpetual's UPAT for 1H25 was $100.5 million, a 2% increase compared to 1H24.
• Total operating revenue increased by 4% to $686.2 million, driven by Asset Management, Corporate Trust, and Wealth Management.
• The Board announced an interim unfranked dividend of 61 cents per share.
• Asset Management AUM reached $230.2 billion, with a $3.4 billion net outflow.
• Wealth Management FUA was $20.6 billion, with flat net flows.
• Corporate Trust FUA reached $1,250.2 billion, a 4% increase from 1H24.
• A Scheme Arrangement with KKR for A$2.175 billion was terminated.

• UPAT increased by 2% compared to the first half of 2024.
• Total operating revenue increased by 4% to $686.2 million.
• Wealth Management FUA was $20.6 billion, an 8% increase from 1H24.
• Corporate Trust FUA reached $1,250.2 billion, a 4% increase from 1H24.
• The company is focused on business separation and cost reduction to improve efficiency.

• NPAT was $12.0 million, significantly lower than the previous periods due to significant items including impairment losses.
• Asset Management experienced net outflows of $3.4 billion.
• A Scheme Arrangement with KKR for A$2.175 billion was terminated.
• Expenses increased by 4% due to variable remuneration and investments in technology and compliance.

• The financial services industry is subject to ongoing legislative and regulatory reform.
• Strategic and execution risks could arise from adverse strategic decisions or improper implementation.
• People risk exists due to the potential inability to attract and retain key personnel.
• Financial, market, and treasury risks include exposure to volatile equity markets and currency fluctuations.
• Business resilience, operational, and fraud risks could result from inadequate processes or systems.
• IT and cyber security risks could lead to business disruption and data breaches.
• Outsourcing risks could arise from inadequate service provider performance.
• Compliance and legal risks include breaches of regulations and ineffective responses to regulatory changes.

Perpetual Group remains focused on delivering value across its three quality businesses: Asset Management, Corporate Trust, and Wealth Management, while pursuing a sale of the Wealth Management business.

• Perpetual will continue to execute on the business separation program to establish standalone and more autonomous businesses.
• Perpetual is implementing a new operating model for Asset Management and delivering on an expanded cost reduction program.
• The company will continue to provide quarterly business updates on the underlying drivers of our business, the execution of our strategy and market conditions.

Perpetual operates in a diversified global financial services industry, facing competition from other asset managers, wealth managers, and corporate trustees. The regulatory landscape is constantly evolving, requiring ongoing compliance efforts. The termination of the KKR deal reflects the challenges in executing large-scale transactions in the current environment.

• Perpetual's Asset Management business competes with global firms like BlackRock, Vanguard, and State Street.
• Its Wealth Management division competes with firms like AMP, Insignia Financial, and large bank-owned wealth managers.
• The Corporate Trust business competes with firms like Link Administration Holdings and Computershare.
• The reported revenue growth of 4% is comparable to industry peers, but the net outflows in Asset Management are a concern.
• The cost-to-income ratio varies across the industry, but Perpetual's ratios are within a reasonable range.

• Shareholders will be impacted by the lower NPAT and the terminated KKR deal, but the dividend announcement provides some positive news.
• Employees may face uncertainty due to the business separation and cost reduction programs.
• Customers should expect continued service quality, but may be affected by changes in the business structure.
• Suppliers may be impacted by the cost reduction efforts.
• Creditors should be reassured by the company's focus on maintaining a strong balance sheet.

• Continue executing the business separation program.
• Implement a new operating model for Asset Management.
• Deliver on an expanded cost reduction program.
• Pursue a sale of the Wealth Management business.
• Refinance existing debt facilities prior to 30 June 2025.
• Monitor and comply with evolving regulatory requirements.

• 6 December 2023: The Board announced a Strategic Review to explore the benefits of unlocking additional value for Perpetual shareholders.
• 8 May 2024: Perpetual entered into a Scheme Arrangement with KKR for A$2.175 billion.
• 9 July 2024: Commencement of 'Tranche 1' of the Quality of Advice Review (QAR) implementation.
• 21 October 2024: ASIC's new derivative transaction reporting rules came into effect.
• 21 November 2024: Application of EU Guidelines on funds' names using ESG or sustainability-related terms.
• 4 December 2024: The Government announced plans for 'Tranche 2' of the Quality of Advice Review (QAR) reforms.
• 11 December 2024: Changes in the MAS Guidelines on Outsourcing came into effect.
• 17 January 2025: The Digital Operational Resilience Act (DORA) came into force.
• 24 February 2025: Perpetual closed out foreign currency exposure positions related to the terminated KKR transaction.
• 1 March 2025: End of ASIC's 6-month grace period for compliance with new derivative transaction reporting rules.
• March 2025: Consultation closes for the UK Consumer Composite Investments (CCI).
• 4 Apr 2025: Interim dividend payment date.
• 30 June 2025: Management expects to refinance the existing facilities in full prior to this date.
• Q1 2026: Landing slots for the Irish domiciled funds to apply for recognition under the UK Overseas Fund Regime (OFR) are currently scheduled.
• December 2025: Target compliance date for US businesses with SEC Rule amendments.