Challenger (CGF) H1 2025 earnings summary

Executive summary

• Delivered strong 1H25 performance with double-digit growth in earnings, EPS, and dividends, and ROE above target, supported by strategic execution, cost base reset, and technology investment.

• Achieved record retail lifetime and Japanese annuity sales, driven by expanded advisor network, product innovation, and new partnerships.

• Significant investments in customer and investment technology platforms, including upgrades and new partnerships, to drive future growth and operational efficiency.

• Strengthened capital position and increased interim dividend by 12% to 14.5cps, with payout ratio at 44%.

• Group assets under management reached $131bn, up 12% year-over-year.

Financial highlights

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

• Normalised EPS rose 12% to 32.8cps; statutory EPS was 10.5c, up from 8.2c.

• Interim dividend increased 12% to 14.5cps per share.

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

• Funds Management NPAT increased 37% to $27m; FUM grew 12.5% to $121bn despite net outflows.

Outlook and guidance

• On track to meet FY25 normalised NPAT guidance of AUD 440–480 million, with midpoint 10% higher than 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, post-tax metrics, and further operating leverage.