Wealth management lifts AXA result
A strong wealth management performance in Australia and New Zealand helped lift AXA’s net profit for the half-year to June 30 by 36 per cent to $246 million.
The group posted a 47.9 per cent increase in interim operating earnings to $46 million for its wealth management products and platforms in Australia and NZ.
Advice businesses in the two countries increased their interim earnings by 36 per cent to $15.5 million and financial protection by 14.7 per cent to $38.3 million.
In its first report under new international accounting standards, the group revealed that interim operating earnings overall in Australia and New Zealand grew by 32 per cent to $99.8 million.
Funds under management, administration and advice in Australia and NZ grew by 9 per cent to $57.2 billion, with funds under advice posting a 5.9 per cent increase to $5.4 billion.
Earnings in Hong Kong increased by 9.6 per cent to $HK505.7 million ($86.7 million) for the half year, while funds under management and administration grew 5.4 per cent to HK$47.2 billion.
AXA chief executive Les Owen attributed the group’s wealth management result to strong inflows and a buoyant domestic equity market.
Owen said the group’s “strong capital and financial position means we are able to pursue growth opportunities where we see value”.
He said the Hong Kong life insurance market remained attractive, while the group would continue to grow its wealth management business there.
He also announced that AXA was close to forming a life insurance joint venture in India, following its move into Malaysia, which it announced last week.
AXA is “well advanced” in discussions with a small number of potential joint venture partners in India, Owen said. “Watch this space over the next couple of months.”
The group intends to commit capital of between $35 million to $65 million during its first three years in India, as part of a total commitment for Asian growth of $150 million to $300 million over the next three to four years.
AXA declared an interim dividend of 6.25 cents, partly franked, compared to 5.25 cents in the previous first half.
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