FY25 Analyst Pack

• Normalised net profit after tax up 9% to $456m
• Statutory net profit after tax up 48% to $192m
• Normalised earnings per share up 9% to 66.3 cents

Challenger Ltd has released its FY25 Analyst Pack, providing an overview of the company's financial and operational performance for the 2025 financial year. The key highlights include:Group Financial Performance:- Normalised net profit after tax of $456m, up 9% from the prior year- Statutory net profit after tax of $192m, up 48% from the prior year- Normalised basic earnings per share of 66.3 cents, up 9% - Statutory basic earnings per share of 28.0 cents, up 47%- Normalised return on equity (post-tax) of 11.8%, up 110 basis points- Statutory return on equity (post-tax) of 5.0%, up 170 basis points- Normalised cost to income ratio of 32.3%, down 150 basis points- Group assets under management of $123.9b, down 3%- Full-year dividend of 29.5 cents per share (fully franked), up 11%- Normalised dividend payout ratio of 44.5%, up 100 basis pointsLife Business Performance:- Normalised net profit after tax of $461m, up 6% - Normalised return on equity (post-tax) of 13.5%, up 80 basis points- Normalised cash operating earnings of $788m, up 5%- Annuity sales of $5.2b, stable- Total life sales of $8.6b, down 6%- Annuity net book growth of $744m, or 4.9% growth on opening liabilities- Total life net book growth of $402m, or 1.9% growth on opening liabilities- Prescribed capital amount (PCA) ratio of 1.60 times, towards the upper end of the target range- Common equity tier 1 (CET1) ratio of 1.19 times, down from 1.23 timesFunds Management Performance:- Normalised net profit after tax of $53m, up 41%- Normalised return on equity (post-tax) of 17.0%, up 480 basis points- Net outflows of $11.6b, down from net flows of $10.1b- Average funds under management of $118.4b, up 12%- Closing funds under management of $112.8b, down 4%

Challenger expects to deliver normalised net profit after tax of $456m in FY25, representing 9% growth compared to the prior year.

Challenger expects to benefit from long-term growth in Australia's superannuation system and demand for retirement income products. The company is well positioned to capitalise on regulatory reforms designed to enhance the retirement phase of superannuation.