Challenger (CGF) investor relations material

Executive summary

• Achieved strong financial results with normalized EPS up 3% to 68.1 cents and statutory NPAT of $506 million, up 163% year-over-year, driven by operational efficiency and positive asset/liability experience.

• Successfully transitioned to new APRA capital standards, enhancing business resilience and growth capacity.

• Strategic focus on retirement income, multichannel distribution, and innovative product launches, including new retirement partnerships, CABN, and credit notes.

• Merger of Fidante with Channel Capital, creating a larger, diversified funds management platform with a 45% equity stake and expected $100m pre-tax gain in FY27.

• Maintained strong capital position, with ordinary and special dividend growth and a $450m buy-back program.

Financial highlights

• Normalized NPAT reached $468 million and normalized EPS was 68.1 cents, both up 3% year-over-year.

• Statutory NPAT of $506 million, up 163% year-over-year.

• Full-year ordinary dividend of 31.5 cents per share, up 7%, plus a special dividend of 1.5 cents per share.

• Group net income rose to $995 million; total expenses held at $319 million, with a cost-to-income ratio of 32.1%.

• Total Life sales grew 12% to $9.6 billion, driving annuity book growth of 10.7%.

Outlook and guidance

• FY27 core EPS guidance is 45–49 cents per share, midpoint 6% higher than FY26 core EPS.

• Medium-term targets: 8–10% compound operating EPS growth, 12–14% operating ROE, 65–75% dividend payout ratio, and CLC PCA ratio of 1.15x–1.35x.

• Targeting $50 billion in assets under management by 2030, up from $31 billion.

• New reporting framework from FY27 will focus on Core Earnings and actual Investment Returns.

• Completion of Fidante/Channel merger expected late 1H FY27.