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 MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021