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.
5%
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?
£2.1billion
Operating profits from Asia over the past 5 years
Market cap | £37.46bn |
PE ratio (TTM) | 12.34 |
EPS (TTM) | 116.80 |
Quarterly Revenue Growth (YoY) | -67.80% |
Prudential share price vitals, Yahoo Finance, 14 August 2019
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