Challenger (CGF) H2 2025 earnings summary

Executive summary

• Achieved strong FY25 results with normalised NPAT of $456 million, up 9% year-over-year, and statutory NPAT of $192 million, up 48%, reflecting improved performance and one-off impacts.

• Celebrated 40th anniversary, emphasizing experience in retirement and financial security for Australians.

• Strategy focused on sustainable, profitable growth, capital strength, business simplification, and digital transformation, including technology investments to future-proof operations.

• Record retail lifetime annuity sales of $1.1 billion (up 26%) and Japanese annuity sales of $984 million (up 39%), with improved sales mix and book quality.

• Increased fully franked full-year dividend by 11% to 29.5 cents per share.

Financial highlights

• Normalised NPAT: $456 million (+9% year-over-year); statutory NPAT: $192 million (+48%).

• Normalised basic EPS: 66.3 cents (+9%); dividend increased 11% to 29.5 cps; normalised ROE rose 110bps to 11.8%.

• Cost-to-income ratio improved to 32.3%, lowest ever for a full year.

• Life normalised NPAT grew 6% to $461 million; Funds Management normalised NPAT up 41% to $53 million.

• Record retail lifetime annuity sales of $1.1 billion and record Japanese sales of $984 million.

Outlook and guidance

• FY26 normalised basic EPS guidance range of 66–72 cents per share, midpoint 4% higher than FY25; group normalised NPAT expected between $455 million and $495 million.

• Guidance assumes no material change in share count and is based on current prudential settings.

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

• Confident in sustaining normalised ROE above target and maintaining cost discipline.

• Capital reforms expected to lower capital intensity, reduce cost of capital, and unlock product innovation.