Prudential 1st Half Operating Profit Rose 9.5%; On Track to Meet 2017 Objectives

By Ian Walker

LONDON--Prudential PLC (PRU.LN) Wednesday reported a 9.5% rise in first-half operating profit, beating market expectations, and said it remains on track to achieve 2017 financial objectives.

The 168-year old international financial-services group said double-digit growth in its Asia business contributed to its improved results, helping offset the impact of turbulent markets in the U.S. and the U.K.

Operating profit rose to GBP2.06 billion ($2.69 billion) in the six months to end-June from GBP1.88 billion in the same period a year earlier. First-half profit was better than the consensus analysts' forecast supplied by the company of GBP1.88 billion.

Asia operating profit rose 15% to GBP743 million, while U.S. profit fell 3% to GBP876 million. In the U.K., operating profit rose 9% to GBP492 million though at asset-management unit M&G, profit fell 10% to GBP225 million, reflecting the impact of recent asset outflows from retail funds on overall funds under management.

Prudential's Solvency II capital surplus--a measure of financial stability--fell to GBP9.1 billion, from GBP9.7 billion.

The board has declared an interim dividend of 12.93 pence, up from 12.31 pence a year earlier.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

August 10, 2016 05:17 ET (09:17 GMT)

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