Challenger (CGF) H1 2026 earnings summary

Executive summary

• Statutory NPAT surged to $339 million in 1H26, up from $72 million in 1H25, driven by strong asset experience and disciplined execution across Life and Funds Management segments.

• Normalised NPAT rose 2% year-over-year to $229 million, with normalised basic EPS up 2% to 33.3 cents per share.

• Interim dividend increased 7% to 15.5 cents per share, fully franked, reflecting a payout ratio of 46.5%.

• Announced an initial $150 million on-market buy-back, supported by a robust capital position.

• Strategic partnerships, technology transformation, and expansion in offshore reinsurance and alternatives position the business for continued growth.

Financial highlights

• Statutory NPAT reached $339 million (+369% YoY); normalised NPAT was $229 million (+2% YoY); statutory EPS rose 369% to 49.2cps.

• Normalised ROE after tax was 11.4%, exceeding the full-year target of 10.7%.

• Cost-to-income ratio improved by 30bps to 31.7%, outperforming the 32%-34% target range.

• Group AUM at $128.2 billion, down 2.4% year-over-year due to net outflows in Funds Management.

• Funds Management normalised NPAT up 7% to $29 million.

Outlook and guidance

• FY26 normalised basic EPS guidance reaffirmed at 66–72 cents per share, with 1H26 EPS at 33.3 cents.

• Group NPAT expected between $455 million and $495 million for FY26.

• Through-the-cycle targets for ROE, cost-to-income, and capital remain unchanged.

• Anticipates meaningful asset allocation shift toward fixed income as APRA capital reforms take effect from July 2026.

• Ongoing focus on innovation, technology upgrades, and expanding partnerships to capture demographic and industry tailwinds.