The finance company backed by billionaire James Packer has delivered a record result by more than doubling its first-half profit.
Challenger Financial Services Group yesterday reported a 117 per cent surge in interim net profit to $130 million, up from $60 million in the previous corresponding period.
That put the company in a position to easily eclipse its $134.3 million net profit result for the year to June.
Assets under management swelled 17 per cent to $46.4 billion over the six months to December, with net income growing 47 per cent to $324 million.
"The result was driven by strong revenue growth across each of our businesses," chief executive Mike Tilley said.
Three of the company's four divisions had met or bettered their return on net assets target of 18 per cent for the half, he said. Only the financial planning division failed to meet the benchmark.
"We are delivering a greater than 30 per cent return on net tangible assets from our businesses and achieving double- digit growth in earnings per share (EPS)," Mr Tilley said.
The firm has interests in funds management, property and infrastructure assets, mortgage financing and financial planning. Mr Packer is the biggest single shareholder with a 22 per cent holding.
Challenger plans to increase investments after starting two Australian property funds and forming real estate joint ventures in Japan and London.
Challenger declared a fully franked interim dividend of 5¢, double the amount from a year earlier.
Source: The Australian
