WBC and IFL asset swap, page-4

@jiantan86

May I ask on what basis you see the earnings stream from Financial Advice as being more volatile (or of a lower quality) than those from Platforms Management and Administration? The main difference I see between the two is that the Advice business has an inherently higher Cost-to-Income ratio, but that doesn’t necessarily make it a worse business, if it can achieve higher revenue growth.

Regarding market speculation about the asset swap, whether or not such a transaction could be value-accretive for IFL’s shareholders ultimately depends on its exact economic details (i.e. on the “price” paid, essentially); and, unfortunately, there just isn’t enough information at this stage to even attempt such a quantification.

In principle, I do not see such an arrangement as being automatically detrimental from the perspective of an IFL shareholder, though.