Challenger Limited (ASX:CGF) Announces 1H25 Financial Results
Financial Performance
Challenger Limited (ASX:CGF) reported a 12% increase in normalised net profit after tax (NPAT) to $225 million for the first half of FY25. Statutory NPAT rose 28% to $72 million. The group’s assets under management reached $131 billion, up 3%. The company declared an interim dividend of 14.5 cents per share, fully franked, a 12% increase. Challenger is on track to achieve its FY25 earnings guidance.
Life Business
The Life division delivered total sales of $4.6 billion, supported by record retail lifetime annuity sales of $583 million, up 24%, and Japanese annuity sales of $616 million, up 78%. New business annuity sales had a tenor of 6.4 years, enhancing the overall Life book composition.
Funds Management
Funds under management (FUM) increased 3% to $121 billion. The Funds Management division achieved a NPAT of $27 million, a 37% rise, driven by FUM growth and strong investment performance.
Strategic Initiatives
Challenger made significant progress in re-platforming customer and investment technology to support future growth. The company partnered with State Street for investment administration and custody services, enhancing scalability and operational efficiency.
Executive Comments
Managing Director and Chief Executive Officer Nick Hamilton said:
“In the first half of 2025, Challenger reported a strong result as we delivered against our financial targets and executed our growth strategy. At the same time, we made significant progress in re-platforming our customer and investment technology, which will enable future growth.
Outlook
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.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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