Perpetual chief executive Geoff Lloyd said private wealth was not immune to company-wide cost-cutting measures.
In unveiling the diversified wealth manager's first-half profit Lloyd said the company's priorities were refining its growth strategy, making further meaningful cost reductions, and reinvigorating its sales and distribution.
"Private wealth is not immune to our second priority of further refining and making meaningful cost reductions," Lloyd said.
Perpetual is conducting a sweeping evaluation of all aspects of its technology systems and has hired a global consultant to help reshape the company's business model and assist its internal team in lowering costs.
Lloyd denied the consultant was brought on to prepare the company for sale.
"It's actually the opposite," he said, adding the consultant's job was to ensure Perpetual met the three priorities.
"Quite frankly, in financial services in any market, you should be making yourself as efficient and productive as you can."
Just over a year ago, private equity giant KKR lobbed a $1.75 billion takeover bid for Perpetual, which rejected the offer of $38 to $40 as too conditional and too low.
Takeover talk persists but Lloyd said yesterday no approaches had been made.
Lloyd declined to give headcount or savings targets, or divulge to what extent Perpetual's business model would be overhauled.
About three weeks ago, Perpetual promoted Lloyd from private wealth and retail distribution group executive to CEO, the company's third chief in 12 months.
He delivered his maiden set of earnings results, with first-half net profit after tax sliding 35 per cent from the same period a year earlier to $22.9 million. Group underlying profit after tax before big one-off items, such as redundancy costs, fell 15 per cent to $34.7 million.
Funds under management from all asset classes fell to $22.9 billion from $27.5 billion a year earlier, with net outflows of $3 billion since the 30 June end of fiscal 2011. Group revenue for the six months to 31 December was $197.7 million, down 14 per cent. The private wealth division contributed profit before tax of $4.9 million, down 36 per cent, as funds under advice fell 8 per cent to $8.1 billion.
Perpetual's private wealth advisers have been writing more advice plans but investors, cautious amid financial market volatility, were awaiting market stability before acting on the advice, Lloyd said.
