Goodbody Stockbrokers returned to profit ahead of sale to AIB

Goodbody Stockbrokers last year returned to the black with pretax profits of €5.5 million. Latest accounts for Goodbody Stockbrokers Unlimited Company show the return to profit came as revenues increased by 12 per cent from €64.86 million to €72.4 million.

The pretax profit of €5.5 million last year followed a pretax loss of €1.83 million in 2019. A breakdown of revenues shows €67.33 million came from from contracts with customers, while €5 million was trading income.

In September, AIB completed the purchase of Goodbody for €138 million. This included the stockbroking and wealth management group's €56 million of surplus cash.

Pay to key management personnel last year declined by 16 per cent from €4.17 million to €3.48 million. This was comprised of salaries of €3.34 million and pension contributions of €142,000.

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Directors’ pay fell by 21 per cent from €1.96 million to €1.55 million made up of €1.33 million in salaries and €220,000 in pension contributions.

Volatility

Within the accounts, directors noted that investment banking experienced a strong out-turn where Covid-19 drove the agenda. Despite the significant volatility in markets “the division experienced year on year revenue growth from trading, commission, research and corporate advisory fees”, they said. They also highlighted growth in funds under management within the company’s wealth management arms.

On the performance of the firm’s asset management business, they pointed to an “exceptional” investment performance . . . with all funds at or well ahead of benchmark”.

The company’s fee income increased by 16 per cent to €32.2 million while commission income rose by 22.5 per cent to €25.8 million. ‘Other income’ increased marginally to €9.2 million.

The accounts disclose that during the year, transactions with a value of €900,000 were executed on behalf of directors. This compared to transactions of €300,000 in 2019.

Numbers employed at the business last year reduced by two to 316 and staff costs totalled €39.9 million, including €34.26 million in salaries.

The group has offices in Dublin, Cork and Galway along with a branch in the UK.

No dividend was paid last year and the company had retained earnings of €71.3million at the end of the year.