Dividends, stronger profits and deal approvals lifted several financial stocks, but asset managers faced selling despite growing funds under management.
Bank of Queensland, Benjamin Hornigold and Regal Partners led the weekly moves, while investors weighed the quality of earnings and future cash returns.
- Benjamin Hornigold rose 9.62% after declaring a fully franked special dividend of 6.2 cents per share.
- Regal Partners fell 8.04% despite recording its 12th straight quarter of net inflows.
- Bank of Queensland gained 7.85% after reporting a statutory profit rebound, a special dividend and a buy-back.
- Australian Finance Group climbed 6.77% as its loan book grew and new investments were expected to add $13 million to FY27 EBITDA.
- Netwealth and L1 Group reported strong funds growth, but both stocks fell as investors questioned future inflows.
Benjamin Hornigold (ASX:BHD) was the week’s strongest mover at 9.62%. Investors responded to its fully franked special dividend of 6.2 cents per share, due in November. Bank of Queensland (ASX:BOQ) rose 7.85% after announcing a statutory profit rebound, a 15-cent special dividend and a buy-back. Australian Finance Group (ASX:AFG) gained 6.77% after its loan book reached $7.3 billion and new investments were expected to add $13 million to FY27 EBITDA.
Growth did not always lift share prices
Regal Partners (ASX:RPL) fell 8.04%, the largest decline in the group. Its funds under management rose to about $21.9 billion, with $700 million of quarterly inflows. The briefing gives no company-specific reason for the fall. Investors may still have sold the shares despite the growth because investment returns were broadly flat.
Netwealth (ASX:NWL) also dropped 4.44%. Total funds under administration reached a record $139.2 billion, but the company cut its FY27 inflow forecast to $17 billion-$19 billion. It also expects acquired business Paradino to lose $3 million in FY27. These two costs give investors less confidence that growth will quickly become profit.
L1 Group (ASX:L1G) slipped 4.64% even though funds under management rose to $19.3 billion. Client inflows continued for a fourth quarter, but Platinum strategies lost $173 million. The result shows that new money is not spreading evenly across the group’s products.
Banks and lenders show stronger cash returns
Bank of Queensland’s statutory profit rose 88% to $250 million, helped by lower comparisons from the prior year. Underlying cash earnings fell 7% to $358 million, and home lending declined 8%. Investors still bought the shares because the bank completed its digital migration, released capital through a Challenger partnership and offered a special dividend and buy-back. The bank must now prove that commercial lending can replace weaker home lending.
AFG delivered a cleaner growth story. Statutory profit rose 39% to $49 million, arrears improved to 0.58% of its loan book and its full-year dividend increased to 9.5 cents per share. Resimac Group (ASX:RMC) also reported stronger activity, with home loan settlements up 20% and total assets under management at a record $16.5 billion. ASIC hardship proceedings remain before the court, which keeps a legal risk in view.
Dividends and asset sales support investment vehicles
Pengana Private Equity Trust (ASX:PE1) lifted its target cash distribution to at least 6% of net asset value after selling part of its SpaceX holding and other investments. Bailador Technology Investments (ASX:BTI) reported $28 million in cash sales and maintained its dividend plan, although profit fell. Plato Income Maximiser (ASX:PL8) kept its monthly dividend at 0.55 cents per share after matching its benchmark with a 7.2% portfolio return.
Qualitas (ASX:QAL) reported a 25% rise in statutory profit and set FY27 normalised profit before tax at $74 million-$80 million. Fee-earning funds rose 36% to $11.9 billion, while the dividend increased 12.5%. BKI Investment Company (ASX:BKI) also lifted profit and set an FY27 ordinary dividend target of 8 cents per share. These results give income-seeking investors several higher payment options, but future distributions still depend on earnings and asset sales.
Deals and regulation remain important tests
IAG (ASX:IAG) rose 5.41% after offering a $20 million Western Australian community package to address competition concerns over its proposed 20-year RAC alliance. The transaction could add $1.2 billion in annual gross written premium and about $100 million in yearly pre-tax savings after integration. The ACCC public benefits process is expected to finish in December 2026, subject to extensions.
Euroz Hartleys (ASX:EZL) gained 1.15% as its $145 million BMO sale cleared more conditions. Shareholder approval and Canadian Bank Act approval remain. Kelly Partners Group (ASX:KPG) secured conditional ASX approval for its proposed Nasdaq move, but shareholders and US regulators must still agree.
Legal and audit issues shaped several smaller names. Clime Investment Management (ASX:CIW) lifted profit, but KPMG qualified its audit opinion over evidence for CAM revenue and receivables. Fiducian (ASX:FID) grew underlying profit 15%, while a $7.95 million ASIC penalty cut statutory profit. Netwealth subsidiaries are also defending a class action linked to First Guardian investments.
Bottom Line?
The next test will be whether higher dividends and growing loan books can continue without weaker lending or legal costs reducing earnings. Investors will also watch the ACCC process for IAG’s RAC alliance, shareholder votes for Euroz Hartleys and Kelly Partners, and the settlements behind 360 Capital Mortgage REIT’s Bathla recoveries.
Questions in the middle?
- Can Bank of Queensland turn stronger commercial lending and its digital system into higher underlying earnings in FY27?
- Will Netwealth restore its earlier inflow pace while funding Paradino and defending the First Guardian class action?
- Can IAG secure approval for the RAC alliance without losing the $1.2 billion annual premium benefit in its outlook?
Sources
This wrap draws on announcements from 20 companies. For the full story and each verified source, see the company's own article:
ASX:AFG, ASX:APL, ASX:BHD, ASX:BKI, ASX:BOQ, ASX:BTI, ASX:CIW, ASX:EZL, ASX:FID, ASX:GLS, ASX:IAG, ASX:KPG, ASX:L1G, ASX:NWL, ASX:PE1, ASX:PL8, ASX:QAL, ASX:RMC, ASX:RPL, ASX:TCF