IOOF Holdings has posted a 5.0 per cent rise in half-yearly underlying profit as it benefited from the part purchase of ANZ's wealth unit, sending its shares higher.
The Melbourne financial services company said underlying net profit came in at $99.9 million to December 31, compared to $94.8 million a year ago.
The results were underpinned by a 10 per cent surge in funds under management to $137.8 billion thanks to the ANZ deal, IOOF said.
"We have delivered a solid financial result in a difficult first half-year," acting chief executive Renato Mota said in a statement.
IOOF shares jumped 10 per cent in early trading on Tuesday, their biggest intraday gain since 2011, compared to a broader market rise of 0.2 per cent.
IOOF's reputation was damaged by an inquiry into financial-sector misconduct last year, which led to the removal of its chief executive and chairman over allegations they used customer money to cover investment losses.
The shares are still trading below the levels they were at before the double-resignation.
IOOF said it expected to spend $20 million to $30 million in new compliance costs to remedy issues raised by the inquiry.
"Ensuring we meet the obligations of our licence conditions remains a key priority in the months ahead," said Mota.
"We are committed to bringing resolution to each of the requirements."
Statutory profit for the company tripled to $135.4 million, boosted by one-off gains including the proceeds of the sale of the company's corporate trust business.
IOOF BRACES FOR REGULATORY HIT
* Interim statutory net profit up 300pct to $135.4 million
* Funds under management up 10pct to $137.8 billion
* Dividend 25.5 cents, fully franked, down 1.5 cents from a year ago
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