Quercus TFI 3Q23 Net Profit Beats Estimates, Records PLN 17m Provision for Success Fee

3Q23 net profit slightly above estimates. PLN 17m provision for success fee. Quercus TFI released 3Q23 figures with the following highlights:

■ 3Q23 net profit of Quercus TFI came in at PLN 4.7m (60% y/y, 15% q/q) and was 6% above our estimates (PLN 4.4m). Slight earnings beat was driven by slightly lower than expected costs. Revenues and net financial income came broadly in line with our forecasts.

■ Management fee in 3Q23 amounted to PLN 13.9m (23% y/y, 11% q/q) and was in line with our expectations. In 3Q23 share of low margin debt funds in total AUM came in at 43% on average (vs. 43% in 2Q23 and 51% in 3Q22). Revenues from purchased redemption orders went up 12% y/y (0% q/q).

■ At the end of 3Q23 total provision for success fee increased to PLN 17.1m from PLN 11.3m in 2Q23.

■ Total costs in 3Q23 came in at PLN 21.5m (17% y/y, 1% q/q) and were 2% below our estimates. Distribution costs went up 19% y/y, staff costs increased 9% y/y, external services costs grew 6% y/y and other costs increased 49% y/y.

■ At the end of 3Q23 AUM of Quercus TFI came in at PLN 3,821m (29% y/y, 11% q/q). Y/y growth was driven by rising assets of QRS Ochrony Kapitału (51% y/y), QRS Agresywny (76% y/y) and QRS Dłużny Krótkoterminowy (58% y/y). Quarterly growth of total assets was driven by rising AUM of QRS Ochrony Kapitału (38% q/q) and QRS Agresywny (36% q/q).

■ In 3Q23 net flows to Quercus TFI amounted to PLN +331m (vs. PLN 105m in 2Q23 and vs. PLN -350m in 3Q22). In 9M23 net flows came in at PLN 432m vs. PLN -1,167m in FY 2022.

■ Teleconference with CEO takes place today, October 20, at 14:00 via MS Teams (or at Zubra 1 Street, Warsaw, 3 rd floor, room Słodowiec)