Prudential Posts Profit In FY23, Says Confident Of FY27 View; But Stock Down

(RTTNews) - Prudential plc reported Wednesday a profit in its fiscal 2023, compared to prior year's loss, with significant growth in new business profit. The company also lifted its dividend for the year. Regarding the current trading and outlook, the firm said sales growth has continued in the first two months of 2024, and that it is increasingly confident in achieving 2027 financial and strategic objectives.

Meanwhile, the shares were losing around 6 percent on New York Stock Exchange as well as on London Stock Exchange.

CEO Anil Wadhwani, said, "These are a very strong set of results while operating in a challenging macro environment, with new business profit up 45 percent driven by a relentless focus on execution in our markets in Asia and Africa. … We delivered an excellent financial and operational performance in 2023 and deployed increased levels of capital in new business, enhancing core capabilities and expanding distribution."

The Directors have approved a second interim dividend per share of 14.21 cents per share, higher than prior year's 13.04 cents per share. This brings a total 2023 divided of 20.47 cents per share, an increase of 9 percent over the prior year.

In fiscal 2023, IFRS profit before tax was $2.10 billion, compared to last year's loss of $643 million. Profit after tax attributable to shareholders was $1.70 billion, compared to a loss of $1.01 billion a year ago.

Basic earnings per share were 62.1 cents, compared to a loss of 36.8 cents in the prior year.

The company said the swing in result largely reflected changes in short-term fluctuations in interest rates.

Adjusted operating profit was up 6 percent from last year to $2.89 billion. Based on adjusted operating profit, profit per share was 89.0 cents, compared to 79.4 cents a year ago.

Group EEV operating profit increased 17 percent from last year to $4.55 billion largely due to higher new business profits from insurance business, an increase in the profit from Eastspring, and a reduction in central costs.

New business profit climbed 43 percent on a reported basis and 45 percent at constant exchange rates to $3.13 billion. Excluding the effect of interest rate and other economic movements, new business profit grew 45 percent on a reported basis and 47 percent at constant exchange rates

The results were led by Hong Kong, with a double-digit growth in 12 of the company's 22 markets following the removal of all pandemic-related restrictions.

On the NYSE, Prudential shares were trading at $18.74, down 6.39 percent. In London, the shares were trading at 737.11 pence, down 5.57 percent.

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