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.
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