Pensions giant Legal & General (LGEN) expects to deliver double-digit percentage growth in operating profit this year after a strong first half that beat market expectations.
Pre-tax profits for the six months to 30 June increased to £1.4 billion versus £342 million a year ago, sending the shares 2.4% higher to 270.3p. The company’s 14% jump in operating profit to £1.1 billion was 8% ahead of market expectations. The company has declared an interim dividend of 5.18p per share, 5% up on a year ago.
‘We are already a leading asset manager and we remain focused on continuing to scale-up our asset origination capabilities which are a unique and important component of our synergistic business model which has driven our 22% return on equity,’ said chief executive Nigel Wilson.
The robust profits performance was driven by a particularly strong showing from its retirement and investment management business, and reflected a much better performance by its investments, which increased in value by £241 million in the period. Net inflows hit £27.4 billion putting £1.3 trillion of assets under management.
‘We’re continuing to make investments that are economically, environmentally and socially valuable, in line with our long-term commitment to delivering Inclusive Capitalism and supporting the Building Back Better and Levelling Up agenda,’ said L&G’s Wilson.