The Bell Financial Group Ltd (ASX: BFG) share price is rising after giving a profit update for FY20.
Bell Financial provides stockbroking, investment and financial advisory services to an array of private, institutional and corporate clients. It operates across Australia and has offices in New York, London, Hong Kong and Kuala Lumpur. One of the most recognizable brands in its stable is Bell Potter.
BFG profit update
Bell’s market update outlined the unaudited results for the full year to 31 December 2020 with increases across the four financial numbers released.
Revenue was $299 million, an increase of 18%. Funds under advice (FUA) increased by 9% to $63.9 billion. Net profit after tax (NPAT) and earnings per share (EPS) both increased by 44%, to $46.7 million and 14.6 cents respectively.
The company will release its full results and report in the February reporting season.
Summary thoughts
Clearly a 44% increase in profit is a good result. It’s hard to know what the 2021 operating environment will be like for Bell, so I’m not sure if it can maintain this level of double digit growth. But if it does then Bell shares could be a under-appreciated opportunity.
However, I’m not sure about its long term growth potential. In the finance space I’d rather go for a business like Magellan Financial Group Ltd (ASX: MFG).
