• Normalised NPAT increased 3% to $468m
• Statutory NPAT increased 163% to $506m
• Normalised ROE of 11.6% exceeds target
• Strong capital management with PCA ratio of 1.50 times
• Proposed Fidante-Channel Capital merger expected in late 1H27

Challenger Ltd delivered a strong financial performance for the 2026 financial year, with normalised net profit after tax (NPAT) increasing by 3% to $468 million and statutory NPAT rising significantly by 163% to $506 million. The company also announced several strategic initiatives, including new retirement partnerships with super funds, wealth managers, and platforms, and the establishment of the Challenger Annuity-Backed Notes (CABN) program. Additionally, Challenger announced a share buy-back and the proposed merger of its multi-affiliate funds management business Fidante with Channel Capital, subject to regulatory approval. The company remains well-capitalised, with a Prescribed Capital Amount (PCA) ratio of 1.50 times under the new capital standards.

FY27 Core Basic EPS guidance range: 45-49 cents per share, midpoint 47 cents

Challenger remains confident in Australia's retirement system's long-term opportunity, entering the next period as a strong, well-capitalised business with a clear strategy.