Key points
- Normalised net profit after tax up 12% to $225 million
- Statutory net profit after tax up 28% to $72 million
- Normalised ROE (post-tax) of 11.6%, above target
Full summary
Challenger Ltd has announced its financial results for the first half of FY25, reporting a 12% increase in normalised net profit after tax to $225 million. The company's statutory net profit after tax increased 28% to $72 million. Normalised ROE (post-tax) increased 120 bps to 11.6%, outperforming the ROE target. Group assets under management (AUM) increased 3% to $131 billion in the half. The Life business maintained its momentum, with record retail lifetime and Japanese annuity sales contributing to total Life sales of $4.6 billion. The focus on longer duration sales has lengthened the tenor of Challenger's liabilities and is supporting stronger returns. Funds Management NPAT was up 37% to $27 million due to FUM growth, strong investment performance and lower expenses. Funds Management FUM increased 3% to $121 billion in the half. Challenger has made progress in re-platforming its customer and investment technology, which will enable future growth. The company reaffirms its FY25 normalised net profit after tax guidance of between $440 million and $480 million.
Guidance
Challenger reaffirms its FY25 normalised net profit after tax guidance of between $440 million and $480 million, with the mid-point of the range representing 10% growth on FY24.
Outlook
Challenger enters the second half of the financial year in great shape, with a business that has strong fundamentals and is achieving its targets. The company will generate long term sustainable growth, supported by the uplift in its operating platforms.