Challenger (CGF) H1 2025 earnings summary

Executive summary

• Delivered strong 1H25 performance with 12% growth in normalised NPAT to $225 million and 28% rise in statutory NPAT to $72 million, with ROE above target and double-digit EPS and dividend growth.

• Achieved record retail lifetime annuity sales ($583 million, up 24%) and Japanese annuity sales ($616 million, up 78%), supported by expanded advisor network and product innovation.

• Significant investments in technology and operational platforms, including partnerships with State Street and Accenture, to drive future growth and efficiency.

• Strengthened capital position with $1.4–1.8 billion in excess capital, increased interim dividend by 12% to 14.5cps, and payout ratio at 44%.

• Strategic progress included new partnerships (UniSuper, Telstra), adviser network expansion, and brand enhancements.

Financial highlights

• Normalised NPAT rose 12% year-over-year to $225 million; statutory NPAT up 28% to $72 million.

• Normalised EPS increased 12% to 32.8cps; statutory EPS up 28% to 10.5cps.

• Interim dividend increased 12% to 14.5cps, fully franked.

• Group ROE post-tax reached 11.6%, up 120bps, exceeding target for the first time since 2017.

• Group AUM reached $131 billion, up 12% year-over-year.

Outlook and guidance

• FY25 normalised NPAT guidance reaffirmed at $440–480 million, midpoint representing 10% growth on FY24.

• Targeting a dividend payout ratio of 30–50% and maintaining a strong PCA ratio within the 1.3x–1.7x range.

• Continued focus on long-term sustainable growth, platform upgrades, and operating leverage.