Expense Cuts and Strategic Wins Position Equity Trustees for Market Leadership

Strong Financial Momentum

Equity Trustees (ASX – EQT) has delivered a standout performance for the year ending 30 June 2025, posting record funds under management, administration and supervision (FUMAS) of $254 billion, a 28% increase on the prior year. This growth underpinned a 7% rise in revenue to $182.5 million and a remarkable 60.4% jump in statutory net profit after tax to $33.2 million. The company’s underlying net profit before tax also grew by 4.1%, reflecting steady operational progress.

These results come as Equity Trustees completes a pivotal three-year strategic project agenda, including the integration of the Australian Executor Trustee (AET) business, significant technology system upgrades, and the exit from its UK and Ireland operations. This milestone marks a clear turning point for the company, positioning it for sustained growth.

Operational Efficiency and Expense Management

After a period of elevated expenses linked to its strategic initiatives, Equity Trustees successfully reduced total expenses by $4.9 million in the second half of FY25 compared to the first half. This expense improvement signals enhanced operational efficiency and disciplined cost management, which will be critical as the company navigates an increasingly complex regulatory environment.

Managing Director Mick O’Brien highlighted the team’s ability to deliver complex projects on time and on budget while maintaining strong client and employee engagement, a testament to the company’s operational resilience.

Business Segment Highlights

The Corporate and Superannuation Trustee Services (CSTS) segment was a standout performer, with revenue increasing 11.9% to $80 million. This growth was driven by 53 new responsible entity appointments and 20 custody appointments, expanding the portfolio to over 400 clients. Corporate Trustee revenue rose 14.7%, fueled by new business and asset growth, while Superannuation Trustee revenue increased 8.1%.

The Trustee and Wealth Services (TWS) business also showed steady progress, with revenue up 3.1% to $102.2 million. Key achievements included the successful integration of AET and the rollout of the NavOne trustee management platform, which modernizes operations and enhances client service capabilities.

Outlook and Strategic Positioning

Looking ahead, Equity Trustees remains optimistic about its growth prospects. The company’s market leadership in both private wealth and corporate trusteeship, combined with a strong pipeline of new business particularly in the Corporate Responsible Entity market, sets a solid foundation for future expansion.

While acknowledging rising regulatory complexity and associated costs, management emphasizes the vital role Equity Trustees plays in the financial ecosystem. Continued investment in technology and expertise aims to enhance the client experience and deliver scalable benefits.

The Board declared a final dividend of 56 cents per share, bringing total dividends for the year to 111 cents, up 6.7%, reflecting confidence in the company’s financial strength and future outlook.