Challenger earnings: Statutory NPAT surges 369% in H1 FY26

The Challenger Ltd (ASX: CGF) share price is in focus today after the company reported a statutory net profit after tax (NPAT) jump of 369% to $339 million and a 2% rise in normalised NPAT to $229 million for the first half of FY26.

What did Challenger report?

• Statutory NPAT up 369% to $339 million
• Normalised NPAT up 2% to $229 million
• Normalised basic EPS up 2% to 33.3 cents per share
• Fully franked interim dividend up 7% to 15.5 cents per share
• Normalised group ROE at 11.4%, 70 basis points above target
• Group Assets Under Management increased 3% to $128 billion

What else do investors need to know?

Challenger recorded an 11% increase in total Life sales to $5.1 billion, led by record domestic annuity sales, which rose by 37% to $3.1 billion. Offshore reinsurance sales also hit a record $695 million, up 13%.

Funds Management Funds Under Management (FUM) grew 3% to $116.2 billion, with innovation continuing in alternative offerings. The company also launched Challenger IM LiFTS Notes on the ASX and took a minority stake in Fulcrum Asset Management to expand its alternatives capability.

Challenger remains strongly capitalised, boasting $1.7 billion in excess capital above APRA’s minimum. Reflecting confidence, the board declared a fully franked interim dividend of 15.5 cents per share and announced a plan to buy back up to $150 million of shares on-market.

What’s next for Challenger?

Challenger is targeting normalised basic EPS for FY26 of between 66 and 72 cents per share, with normalised NPAT guidance of $455 million to $495 million. The company remains focused on growing its retirement partnerships, expanding its offshore reinsurance platform, and innovating in retirement income solutions.

Strategic partnerships with superannuation funds and advice technology platforms will aim to boost accessibility to annuity products and lifetime income streams, positioning Challenger well to support the next growth phase in Australia’s retirement income market.

Challenger share price snapshot

Over the past 12 months, Challengers share have risen 37%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post Challenger earnings: Statutory NPAT surges 369% in H1 FY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.