Challenger posts higher $288 million profit

The news: Retirement investment manager Challenger has reported a $288 million statutory net profit after tax, up 13% on the back of strong earnings growth.

The numbers: Group assets under management lifted 6% to $105 billion — this was linked to growth in its Life book, which grew 5.2% over the financial year and achieved total sales of $9.7 billion. Assets under management increased 6% to $105 billion, while funds management earnings dropped 26% to $62 million, due to outflows and increased expenses. Challenger will issue a fully franked dividend of 24 cents per share, up 4% on last year.

The context: Challenger is Australia's dominant annuities provider. It recently struck up partnerships with Aware Super and TelstraSuper. Challenger is targeting a net profit before tax of between $555 million and $605 million in FY24, not including the sale of Challenger bank, which is expected to be completed before the end of the year.