Prudential raises dividend after surge in pre-tax profit

Prudential increased its full-year dividend by 15.9 per cent to 29.19p per share as it reported a sharp increase in total profit before tax supported by surging business in Asia over the full year 2012.

Prudential increased its full-year dividend by 15.9 per cent to 29.19p per share as it reported a sharp increase in total profit before tax supported by surging business in Asia over the full year 2012.

Total profit before tax increased by 54% to £2.8bn, operating profit rose 25% to £2.5bn and shareholder funds climbed 21% to £10.4bn.

Over the course of the year, the group exceeded two of its "Growth and Cash" objectives for Asia.

In 2010, Prudential had outlined a strategy to more than double Asia's 2009 IFRS operating profit from £465m to £930m by full year 2013. In fact, it delivered £988m in 2012 and exceeded Asia's 2013 cash target of £300m.

More than 1.0m new customers were added in Asia, while in the US Prudential sold more than 200,000 new policies.

CEO: Asia 'sweet-spot' markets drive businessTidjane Thiam, Group Chief Executive of Prudential, commented: "Our focus on capital and risk management has allowed us to deliver both growth and cash to shareholders, despite a challenging macroeconomic environment.

"Our business in Asia has continued to demonstrate the benefits of both its scale and its diversification, by growing strongly on each of our three key performance metrics: new business profit, IFRS operating profit and cash," he added.

"This performance has been largely driven by our 'sweet-spot' markets including Indonesia, Singapore, Malaysia, the Philippines and Thailand. Asia's net cash remittance of £341m, an increase of 66% on the prior year, made it, for the first time, the largest contributor of cash to the group. To put this into context, in 2009 Asia's net cash remittance was £40m."

Prudential's share price was up 2.14% to 1,051p at 08:52 on Wednesday.

MF

Recommended

The Federal Reserve wants markets to fall – here’s what that means for investors
Stockmarkets

The Federal Reserve wants markets to fall – here’s what that means for investors

The Federal Reserve’s primary mandate is to keep inflation down, and lower asset prices help with that. So, asks Dominic Frisby – just how low will st…
25 May 2022
Four high-quality US stocks to give shelter from the storm
Share tips

Four high-quality US stocks to give shelter from the storm

Professional investor Timothy Parton of the JPMorgan American Investment Trust picks four solid US stocks to buy now.
24 May 2022
Three undervalued mid-cap stocks with attractive prospects
Share tips

Three undervalued mid-cap stocks with attractive prospects

Professional investor Katen Patel of the JPMorgan Mid Cap Investment Trust picks three fast-growing mid-cap stocks to buy now.
24 May 2022
Britain’s ten most-hated shares – w/e 20 May
Stocks and shares

Britain’s ten most-hated shares – w/e 20 May

Rupert Hargreaves looks at Britain's ten-most hated shares, and what short-sellers are looking right now.
23 May 2022

Most Popular

Everything is collapsing at once – here’s what to do about it
Investment strategy

Everything is collapsing at once – here’s what to do about it

Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect th…
23 May 2022
Imperial Brands has an 8.3% yield – but what’s the catch?
Share tips

Imperial Brands has an 8.3% yield – but what’s the catch?

Tobacco company Imperial Brands boasts an impressive dividend yield, and the shares look cheap. But investors should beware, says Rupert Hargreaves. H…
20 May 2022
Three high-quality FTSE 100 shares going cheap
Share tips

Three high-quality FTSE 100 shares going cheap

As stockmarkets continue to fall, bargains are starting to appear, says Rupert Hargreaves. Here, he picks three high-quality FTSE 100 shares that are …
23 May 2022