Strong market boosts AXA profits
A booming Australian share market and strong growth in financial planning and wealth management products have resulted in a welcome boost to the bottom line of AXA Asia Pacific.
The group reported an 18 per cent rise in interim operating earning to $185.8 million yesterday, taking profits for the six months to the end of June to $246.4 million.
The continued strength of the Australian market lifted operating earnings from AXA’s wealth management products and platforms by 48 per cent to $46 million, to help underpin the result.
Earnings from AXA’s advice businesses were also up, rising 36 per cent to $15.5 million.
AXA, which owns AXA Financial Planning, Charter Financial Planning, iPac Securities and Monitor Money and has a stake in Tynan Mackenzie, is the country’s fifth largest financial planning network.
The performance of AXA risk insurance division was also up, increasing earnings 15 per cent to $38.3 million as a result of strong life insurance sales.
Overall, AXA increased new business by 17 per cent to $45.6 million, a result “reflecting the strong growth in wealth management inflows” and “improved sales of financial products”, according to chief executive Les Owen.
However, net retail inflows were $1.37 billion for the six months, slightly down on the same period last year.
In Asia, AXA’s Hong Kong operations, which includes a small presence by financial planning group iPac, grew earnings by 10 per cent over the six months to HK$505.7 million.
Ipac has $76 million under advice in Hong Kong, a rise of 27 per cent over the past six months.
AXA declared a 6.25 per cent interim dividend for 2005 on the back of the result, up 19 per cent on 2004.
Recommended for you
Donald Trump’s presidency has already begun reshaping the corporate and political landscape in the US, with executive orders rolling back diversity, equity, and inclusion (DEI) initiatives and clean energy efforts.
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford are joined by AMP chief economist Shane Oliver to take a look at what can be learned from 2024 as attention turns to what markets will do in the new year.
Join us for a special episode of Relative Return Unplugged as hosts Maja Garaca Djurdjevic and Keith Ford are joined by shadow financial services minister Luke Howarth to discuss the Coalition’s goals for financial advice.
In this special episode of Relative Return Unplugged, we are sharing a discussion between Momentum Media’s Steve Kuper, Major General (Ret’d) Marcus Thompson and AMP chief economist Shane Oliver on the latest economic data and what it means for Australia’s economy and national security.
