Bell Financial Reports 44% Profit Drop, Tech Divisions Up 17.5%

Mixed Half-Year Results Reflect Market Volatility

Bell Financial Group (ASX, BFG) has released its half-year results for the period ending 30 June 2025, revealing a net profit after tax of $9.3 million, a significant 44% decline compared to the same period last year. Revenue also fell by 12.5% to $121.5 million, underscoring the challenging environment for traditional broking services amid global market volatility.

Despite the overall profit drop, the company’s strategic pivot towards diversified and recurring revenue streams is paying dividends. The Technology & Platforms and Products & Services divisions combined to generate $46.3 million in revenue, up 12% year-on-year, and contributed all of the group’s first-half earnings with a 17.5% increase in net profit after tax to $12.1 million.

Broking Division Faces Headwinds

The Broking division, encompassing retail and institutional equities, bore the brunt of market turbulence. Revenue declined sharply by 23.5% to $69.4 million, resulting in an after-tax loss of $2.8 million. This segment’s performance highlights the sector’s sensitivity to market swings, despite a rebound in July that saw improved trading conditions and a net profit after tax of $7.4 million for that month alone.

Strategic Growth in Technology and Services

Bell Financial’s Technology & Platforms division grew revenue by 14.1% to $21.1 million, with net profit rising nearly 10%. The successful migration of approximately 75,000 accounts from Macquarie Online Trading has been a key driver, with over 60% client activity post-migration.

The Products & Services division also posted solid gains, with revenue up 10% to $25.2 million and net profit surging 22.6% to $7.6 million. A recent strategic partnership with Praemium aims to expand Bell Potter’s wealth management capabilities, enabling a shift from transactional brokerage to fee-based revenue streams and offering clients a more comprehensive investment platform.

Balance Sheet Strength and Dividend Adjustment

Bell Financial maintains a robust balance sheet, boasting $96.8 million in net cash and no operating debt as of 30 June 2025. Funds Under Advice reached a record $87.3 billion, reflecting steady growth in client assets under management.

However, the board declared a reduced fully franked interim dividend of 3 cents per share, down from 4 cents in the prior year, signaling a cautious approach amid ongoing market uncertainties and increased investment in future growth initiatives, including the Bell Potter wealth platform and a new graduate program.

Leadership and Outlook

In July, Bell Financial appointed Nick Hamilton as Chief Financial Officer, bringing over 25 years of financial services experience to support the company’s growth strategy. Co-CEO Dean Davenport emphasized the company’s transformation into a diversified wealth management business designed to weather market cycles and deliver sustainable growth.

While the first half results reflect the challenges of a volatile market, Bell Financial’s expanding technology and services divisions offer a promising foundation for future resilience and earnings growth.