United Bankers (HLSE) H1 2024 earnings summary

Executive summary

• Achieved the strongest half-year in company history, with revenue up 33.5% to €33.0 million and adjusted operating profit nearly doubling to €13.8 million, driven by successful forestry strategy and the sale of UB Nordic Forest Fund II LP.

• Significant growth in wealth management fee income and assets under management, which increased 4.3% to €4.8 billion, with positive net fund subscriptions and strong discretionary asset management sales.

• Major IT system overhaul completed, streamlining operations and supporting future digital service development.

• Oversubscribed share issue increased employee ownership, with internal ownership rising to over 75% in some reports and 54% in others.

• Received industry recognition for alternative investment strategies.

Financial highlights

• Revenue rose 33.5% year-over-year to €33.0 million; adjusted operating profit nearly doubled to €13.8 million (+97.6%).

• Earnings per share increased 91.2% to €0.96; adjusted EBITDA up 86.5% to €15.0 million.

• Cost-to-income ratio improved to 0.59 from 0.71 year-over-year.

• Assets under management reached €4.8 billion, up 4.3% from the previous year.

• Delivered a 13.3% IRR to investors from the divestment of Nordic Forest Fund II, generating a €10.6 million performance fee.

Outlook and guidance

• Guidance for 2024 reiterated: adjusted operating profit expected to increase significantly from 2023 levels.

• Growth expected from international sales of real asset funds and successful capital raising for the UB FIGG fund.

• Falling interest rates anticipated to support real estate market recovery and gradual economic improvement.

• Confident in continued demand for alternative investments, especially forestry and energy.

• Predictable management fee income expected to support future results.