Tuesday, 06 August 2013 10:57
L&G sees profit and revenue increase thanks to acquistions
Legal & General has seen pre-tax profit increase by 13 per cent to £592m in the first half of 2013.
In its first-half results today, the firm announced the increased profit was due to higher assets under management. Total revenue was up 12 per cent to £246m from £219m a year ago.
Operating profit in its investment management division LGIM was £135m, up 13 per cent from £119m a year ago.
Assets for LGIM increased by seven per cent from £406bn at the end of 2012 to £433bn. This includes £32bn managed on behalf of annuities and £50bn on behalf of savings.
The firm said it expected the impact of transparent charging from the RDR to drive demand for low-cost retail passive funds.
Gross flows to LGIM, a corporate member of the Institute of Financial Planning, were up 66 per cent to £24.9bn from £15bn a year ago.
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In its savings division, assets grew by 59 per cent from £70bn to £111bn due to the acquisition of £39bn in additional assets as part of the purchase of Cofunds.
Profits were down in its savings division which saw a 14 per cent decrease from £72m a year ago to £62m.
Nigel Wilson, group chief executive, said: "Legal & General delivered another very strong performance in H1 2013 with double-digit growth in sales, cash, operating profit and profit after tax.
"We are successfully evolving our strategy from a post-financial crisis focus on cash to one based on cash plus growth plus selective acquisitions."
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In its first-half results today, the firm announced the increased profit was due to higher assets under management. Total revenue was up 12 per cent to £246m from £219m a year ago.
Operating profit in its investment management division LGIM was £135m, up 13 per cent from £119m a year ago.
Assets for LGIM increased by seven per cent from £406bn at the end of 2012 to £433bn. This includes £32bn managed on behalf of annuities and £50bn on behalf of savings.
The firm said it expected the impact of transparent charging from the RDR to drive demand for low-cost retail passive funds.
Gross flows to LGIM, a corporate member of the Institute of Financial Planning, were up 66 per cent to £24.9bn from £15bn a year ago.
{desktop}{/desktop}{mobile}{/mobile}
In its savings division, assets grew by 59 per cent from £70bn to £111bn due to the acquisition of £39bn in additional assets as part of the purchase of Cofunds.
Profits were down in its savings division which saw a 14 per cent decrease from £72m a year ago to £62m.
Nigel Wilson, group chief executive, said: "Legal & General delivered another very strong performance in H1 2013 with double-digit growth in sales, cash, operating profit and profit after tax.
"We are successfully evolving our strategy from a post-financial crisis focus on cash to one based on cash plus growth plus selective acquisitions."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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