Challenger (CGF) investor relations material

Executive summary

• Celebrated 40th anniversary, highlighting expertise in retirement and financial security for Australians.

• Achieved strong FY25 growth with normalized NPAT of $456M, up 9%, and statutory NPAT of $192M, up 48%.

• Delivered a full-year dividend of 29.5 cps, up 11% year-over-year.

• Focused on business simplification, customer relationships, and expanding partnerships.

• Launched innovative income platform and listed income notes, with strong demand.

Financial highlights

• Normalized EPS increased 9% to 66.3 cps; dividend rose 11% to 29.5 cps.

• Normalized ROE reached 11.8%, up 110bps; cost to income ratio improved to 32%.

• Life normalised NPAT grew 6% to $461M; Life normalised ROE post-tax reached 13.5%.

• Funds Management normalised NPAT up 41% to $53M, with performance fees up 57%.

• Life COE margin increased to 3.19%; annuity sales reached $5.2B, with record Retail Lifetime and Japanese sales.

Outlook and guidance

• FY26 normalized EPS guidance: 66–72 cps, midpoint 4% above FY25.

• FY26 group normalized NPAT expected between $455M and $495M.

• Targets include normalized ROE of RBA cash rate plus 12% after tax, cost to income ratio of 32%-34%, and dividend payout ratio of 30%-50%.

• Guidance assumes no change in cash rate; capital reforms expected to reduce capital intensity and unlock product innovation.

• Confident in sustaining normalized ROE above target through the cycle.