Bell Financial Group Posts $30.7m Profit, 11.9% Revenue Rise in 2024

Strong Financial Performance Amid Market Recovery

Bell Financial Group (ASX: BFG) delivered a compelling financial performance for the full year ended 31 December 2024, reporting a 26.4% increase in profit after tax to $30.7 million on revenue growth of 11.9% to $276.4 million. This marks a significant rebound following two challenging years, driven by improving market sentiment and a return of investor confidence.

All business divisions contributed to the growth, with Technology & Platforms and Products & Services businesses notably delivering record revenue and earnings. These segments accounted for 31% of total Group revenue and an impressive 70% of Group profit, underscoring the Group’s strategic focus on recurring revenue streams that provide stability across market cycles.

Dividend and Shareholder Returns

Reflecting its strong earnings, Bell Financial Group declared a fully franked final dividend of 4.0 cents per share, matching the interim dividend paid in September 2024. The net tangible assets per share increased to $0.30 from $0.28 in the prior year, signaling enhanced shareholder value. The Group’s return on equity rose to 18.3%, a 21.7% improvement year-on-year.

Strategic Growth Initiatives and Leadership

In a strategic move to expand its market footprint, Bell Financial Group is pursuing the acquisition of Selfwealth, a publicly listed online broking business. The offer, structured as a scheme of arrangement at $0.25 per share, faces competition from a higher non-binding indicative proposal at $0.28 per share. The Group remains committed to disciplined financial discipline as it evaluates its options.

Additionally, Bell Financial Group reached an agreement with Macquarie Bank to transfer approximately 75,000 Macquarie Online Trading accounts to its Bell Direct and Desktop Broker brands, expected to complete after February 2025. This transfer is poised to strengthen Bell’s position in the online broking market and create new growth opportunities within its Technology & Platforms business.

The Board appointed Arnie Selvarajah and Dean Davenport as Co-Chief Executive Officers in November 2023, ensuring continuity and leveraging their deep operational expertise. Their leadership is expected to be pivotal in navigating the Group’s growth trajectory and evolving market dynamics.

Robust Risk Management and Operational Efficiency

Bell Financial Group continues to invest heavily in cybersecurity and regulatory compliance, recognizing the increasing complexity of the compliance landscape. The Group’s dedicated Cyber & Information Security team, combined with ongoing staff training and advanced threat detection systems, fortifies its resilience against cyber threats.

Operational efficiencies were enhanced through the consolidation of sales and operations teams and the migration of Bell Potter Securities clients onto the Third Party Clearing platform, delivering meaningful cost synergies.

Outlook: Cautious Optimism for 2025

With the Australian market reaching all-time highs in early 2025 and interest rates poised to ease, Bell Financial Group enters the new year with cautious optimism. The Group has already completed several Equity Capital Markets transactions in January, maintaining a strong deal pipeline. Focus areas include expanding recurring revenue streams, enhancing Portfolio Administration Services, and exploring accretive external growth opportunities.

While the outcome of the Selfwealth acquisition remains uncertain, Bell Financial Group’s disciplined approach to growth and investment in talent development through its Graduate and Adviser Training Programs position it well for sustainable success.