Challenger Ltd (ASX: CGF) shares jumped 10% to $7.15 today after the annuities manager posted a net profit of $308 million on a return on equity of 15.8% for the financial year ending June 30 2019.
The statutory profit was down $15 million or around 3% with the "adjusted" net profit before tax of $548 million marginally up $1 million on the prior year.
The Challenger share price is probably rising today as the profit beat analysts' modest expectations and as the annuities manager stuck to guidance for FY 2020 net profit before tax between $500 million to $550 million, which would represent a result of flat to marginally down on the prior period.
Challenger's CEO, Richard Howes, said: "While significant disruption has clearly impacted our results in 2019, our outcomes demonstrate the strength of the franchise we've built. Our market leading brand, diverse distribution channels and compelling product offering underpin our performance."
In other news today rival Sydney-based financial services giant Magellan Financial Group Ltd (ASX: MFG) confirmed it's not looking to an alternative annuities type product for income seekers in retirement. Magellan grew its earnings per share 75% to $2.13 over FY 2019.
