Prudential [PRU] share price surged in morning trading as half-year numbers saw operating profits continue to climb and growth in its Asian business. The UK’s biggest insurer also updated the market on its planned demerger.
What happened in Prudential’s 2018 results?
In 2018's full-year results, Prudential's operating profits came in at £4.8 billion, up 6% from the previous year. Asian business was the big earner, where new business profit was £2.6 billion, up 14% year-on-year. Operating profits in Asia were also up 14%, coming in at £2.16 billion. For the full year 2018, the company rewarded shareholders by increasing the dividend 5% to 49.35p.
Dividend increase in 2018 to 49.35p
What we were told to watch
Analysts at UBS expected £2.62 billion in operating profits for the first half of 2019, up 9% year-on-year. Again, growth in Asia was expected to feature heavily, with the region now Prudential's biggest profit earner since starting business there 20 years ago.
According to analysts at UBS:
“[Interim results will be] driven by Asia £1.1bn (up 20% year-on-year , +4% vs cons), US £1.28 billion (up 28% due to DAC benefit, +10% vs cons), UK £0.35 billion (up 65% due to management actions, +11% vs cons), M&G £0.25 billion (-8% y-o-y, in-line vs cons) and Eastspring £0.1bn (up 6% y-o-y, -4% vs cons)."
What's been happening at Prudential?
Operating profits from Asia over the past 5 years
|PE ratio (TTM)||12.34|
|Quarterly Revenue Growth (YoY)||-67.80%|
Prudential share price vitals, Yahoo Finance, 14 August 2019
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.