Source: Kapitales Research

Highlights

• FY25 NPAT increased 17% to AU$36.0 million, while EBITDA rose 18%, reflecting strong operating leverage and margin expansion across both divisions.
• Platforms division generated 72% of group NPAT, reinforcing the company’s strategic shift toward scalable recurring revenue businesses.
• Unaudited FY26 YTD April NPAT surged 197% to AU$16.3 million, supported by improving market activity and strong capital markets momentum.

Bell Financial Group Limited (ASX: BFG) gained 4.832%, with its share price rising by AU$0.064 to AU$1.410. The upward movement follows the company’s 2026 AGM presentation, which highlighted strong financial performance, accelerating momentum across strategic initiatives, and continued expansion of its recurring revenue base.

Strong Financial Performance Across Core Operations

Bell Financial delivered FY25 revenue of AU$299.2 million, representing an 8% increase year-on-year, while EBITDA increased 18% to AU$56.0 million. Net profit after tax rose 17% to AU$36.0 million, supported by stronger trading conditions, operational leverage, and margin improvement across both Markets and Platforms divisions. Earnings per share increased 18% to 11.3 cents per share, while dividend per share rose 19% to 9.5 cents per share, highlighting continued shareholder value creation.

Platforms Division Emerging as Primary Earnings Driver

The Platforms division continued to strengthen its contribution to group profitability, generating approximately 34% of group revenue and 72% of total NPAT during FY25. Revenue from the division increased 13% to AU$97.2 million, while NPAT rose 20% to AU$25.9 million. Growth was supported by higher online broking activity, third-party clearing services, portfolio lending expansion, and increased Bell Potter Private Wealth revenue. NPAT margin for the division expanded to 26.6%, reflecting the scalability and efficiency of recurring revenue operations.

Funds Under Advice and Wealth Platform Expansion

Funds under advice (FUA) increased 7.3% to AU$92.1 billion, driven by strong client inflows, adviser onboarding, and retention. Bell Potter Private Wealth assets increased to AU$6.1 billion, while CHESS-sponsored holdings rose to AU$88.0 billion. Management highlighted the ongoing conversion of sponsored holdings into private wealth assets as a key strategic initiative to enhance recurring earnings visibility over time.

Strong Balance Sheet Supports Strategic Growth

The group maintained a strong financial position with no core debt and AU$146.0 million in company-held cash. Net assets stood at AU$254.8 million, while net tangible assets reached AU$106.8 million. The company also reported a gross dividend yield of 10.3% and a return on equity of 20.3%, reinforcing balance sheet quality and capital efficiency.

Technology, AI and Wealth Industry Trends Driving Opportunity

Management emphasised structural changes reshaping the Australian wealth industry, including a projected AU$3.5 trillion intergenerational wealth transfer, increasing adoption of digital advice tools, and growing demand for hybrid wealth management solutions. Bell Financial continues investing in digital infrastructure, AI-enabled engagement capabilities, and platform scalability to position itself for evolving client behaviour and long-term industry transformation.

FY26 Momentum Indicates Accelerating Earnings Trajectory

The strong second-half momentum in FY25 has continued into FY26, with unaudited group revenue for the first four months reaching AU$109.6 million, up 37% year-on-year. Unaudited NPAT surged 197% to AU$16.3 million, reflecting stronger equity market activity, improved investor confidence, and continued growth across both operating divisions. Markets division NPAT increased 423% during the period, while Platforms division NPAT increased 15%, demonstrating broad-based earnings strength.

Note- All data presented is based on information available at the time of writing.

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