Financial

Perpetual Corporate Trust’s FY16 profit before tax was $34.1 million, $2.8 million or 9% higher than FY15. This increase on FY15 reflected growth in the underlying Trust and Fund Services businesses. The cost to income ratio in FY16 was 61%, 1% lower than FY15. 

Perpetual Corporate Trust generated total revenues of $87.3 million in FY16, $4.8 million or 6% higher than FY15. The main driver of increased revenue was the continued growth in the securitisation market in Australia and inbound capital flows into property and infrastructure investments. 

In FY16 Trust Services revenue was $48.3 million, $4.5 million or 10% higher than in FY15. The primary drivers for the increase on FY15 were:

• the improvement in the securitisation markets for asset-backed securities in Australia, in particular, auto finance and consumer finance markets, and
• further uptake of Perpetual’s data services solution in response to changes mandated by the Reserve Bank of Australia to standardise and enhance reportable data in the securitisation market. 

Revenue also benefited from higher average FUA levels of RMBS in FY16 compared to FY15. 

In FY16 Fund Services revenue was $39 million, $0.8 million or 2% higher than in FY15, driven primarily by continued inbound capital flows into property and infrastructure investments. Excluding the previously disclosed $2 million of non-recurring revenue in FY15, the underlying Fund Services business grew by 8% in FY16. 

Perpetual Corporate Trust incurred total expenses of $53.2 million in FY16, comprising operating expenses, depreciation, amortisation and equity remuneration expenses. Total expenses were $2 million or 4% higher than in FY15.

Focus

Under Lead & Grow, Perpetual Corporate Trust’s primary opportunity is to harness growth in its market leading businesses. Trust Services will enhance its market leading position in the provision of trust, custody and standby services to debt capital and securitisation markets through the provision of value-added services via its data services capability, including ABSPerpetual. Fund Services will continue to leverage its scale in the market and expand into adjacencies such as providing responsible entity and investment management services to managed investment trusts. 

Delivery

Perpetual Corporate Trust has continued its diversification into the adjacencies of trust management, standby servicing, document custody and accounting, allowing its debt market services to continue to grow. 

Data services represents a new growth segment with regulatory reporting and digital insights representing key opportunities. 

The managed fund services business has also delivered a more diversified business and strong growth. 

During the year, Perpetual announced it had been selected as trustee for the biggest listing on the Singapore stock exchange since 2013. Perpetual is the only trustee with licences to provide trustee services in both Australia and Singapore. This marks the fifth listed trusteeship for Perpetual (Asia).