Rising share markets and continued cost cutting have delivered a 19 per cent rise in wealth manager Perpetual’s half year profit.

The company has cut about 450 staff and reduced pay and bonuses since taking a tougher stance on costs in 2011.

More than half of the jobs were shed when Perpetual sold its mortgage processing business in July 2012.

The company achieved cost savings of $12.3 million in the six months to the end of December, well ahead of what it had forecast.

Chief executive Geoff Lloyd said the company was well on track to reach its target of annual cost savings of $50 million, before tax, from 2015.

A rebound in investor confidence and share prices in the final three months of calendar 2012 further boosted Perpetual’s financial performance.

It made a net profit of $27.3 million in the six months to December 31, up from $22.9 million in the previous corresponding period.

When the one-off effects of Perpetual’s restructure are excluded, the company made an underlying half year profit of $35.1 million, up two per cent from the previous corresponding period.

While markets have strengthened, Mr Lloyd said further progress would be needed before the amount of funds coming into investment products improved.

“It may take a prolonged period of market stability to fully rebuild investor sentiment and create a sustained recovery in flows,” he said.

“We are firmly on the course we set for the company, and we are enabling the various businesses for improved performance.

“The first signs of that impact are emerging, but much remains to be done.”

Perpetual shares rose by as much as eight per cent in morning trade, and were up $1.84, or 4.7 per cent, at $41.30 at 1449 AEDT.