- Investment Management experienced net outflows of GBP5 billion in the first half, an 84% decrease year-over-year, significantly lower than the estimated outflows of GBP19.56 billion.
- Assets under management in the Investment Management unit reached GBP1.12 trillion, marking a slight decline of 0.4% compared to the previous year, matching the estimate.
- Overall operating profit was GBP905 million, down 1.6% year-over-year, surpassing the estimated GBP874.5 million.
- Legal & General Investment Management reported an operating profit of GBP202 million, a decrease of 5.6% year-over-year.
- Legal & General Retirement Institutional’s operating profit rose by 11% year-over-year to GBP618 million.
- The Retail division’s operating profit reached GBP237 million, an increase of 2.6% year-over-year, exceeding the estimated GBP231.2 million.
- Pretax profit increased by 28% year-over-year to GBP406 million, although it was below the estimated GBP866.3 million.
- Profit after tax surged by 42% year-over-year to GBP316 million.
- The interim dividend per share was 6.12p.
- Core operating EPS increased by 9%, reaching the top end of the targeted range of 6-9%.
- The company expressed confidence in the positive outlook for its businesses and confirmed it is on track to achieve financial targets.
- Over GBP5 billion is projected to be returned to shareholders through dividends and share buybacks over three years, with 90% of the GBP500 million buyback announced at the full year results nearly complete.
- The firm anticipates a growth in core operating EPS of 6-9% for the full year and expects higher growth in Own Shareholder Funds (OSG) by year-end.
- Market recommendations consist of 7 buys, 7 holds, and 3 sells.
A look at Legal & General Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Legal & General Group plc, a leading holding company, is positioned for a stable long-term outlook based on its Smartkarma Smart Scores assessment. The company excels in providing high dividends with a score of 5, indicating strong returns for investors. Additionally, Legal & General demonstrates robust momentum with a score of 4, indicating positive market sentiment and potential growth opportunities. However, the company scores lower in areas such as value, growth, and resilience, with scores of 2, suggesting room for improvement in these aspects. Despite these lower scores, Legal & General‘s core focus on providing savings, risk, and investment management services positions it well for sustained performance in the long run.
Legal & General Group plc, operating through its subsidiaries, offers a range of financial products such as annuities, life assurance, and long-term savings, catering to a diverse customer base through various distribution channels. While the company’s overall Smart Scores point to strengths in dividends and momentum, there are areas where Legal & General can enhance its performance to drive value and resilience over the long term. By leveraging its strong foundation in financial products and expanding its market presence, Legal & General is poised to navigate the evolving landscape of the financial services industry and deliver sustainable returns to its stakeholders.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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