Balanced Portfolio: Results from CGF (FY2024)

Results from CGF (FY2024)​(CGF Result Aug 2024):

1. Normalised Net Profit Before Tax (NPBT): $608.1 million, up 16.8% from FY23.
2. Normalised Net Profit After Tax (NPAT): $416.6 million, up 14.5% from FY23.
3. Normalised EPS: 60.9 cents, up 14.3% from FY23.
4. Full-Year Dividend: 26.5 cents per share, up 10% from FY23.
5. Statutory Net Profit After Tax: $130 million.
6. Group Assets Under Management (AUM): $127 billion.
7. Total Life Sales: $9.1 billion, down 6.3% from FY23.

Comparison vs Expectations:

• Normalised NPBT and NPAT were strong, exceeding expectations based on the general tone of analyst commentary. This indicates a robust financial performance.
• EPS significantly outperformed the expectations of Citi and Morgan Stanley but was slightly below Macquarie’s forecast. This suggests that Challenger’s performance was better than expected by most analysts.
• Dividend matched or slightly exceeded analyst expectations, aligning closely with Morgan Stanley’s and Citi’s predictions.
• Total Life Sales were slightly lower than previous years, which might have been a slight disappointment, but the strong profit figures likely offset concerns.

Challenger Limited’s financial results for FY2024 exceeded market expectations, particularly in terms of profitability, EPS growth, and stronger-than-expected dividends, despite slightly lower total Life sales. The company’s performance was marked by an increase in ROE and has been positively received by most analysts. However, the statutory net profit was lower due to asset and liability experiences and other one-off items, and the Funds Management division underperformed slightly compared to the previous year, which may have fallen short of market expectations.