Legal & General shares were flat at 271.7p in early morning trading on Tuesday after the company reported an 8% operating profit growth to £1.1 billion in HY1 2022 compared to £1 billion the last year.
The legal group announced a post-tax profit rise to £1.1 billion against £1 billion in HY1 2021 and a return on equity of 21.3% from 22% the year before.
The company noted a solvency II coverage ratio of 212% against 182% year-on-year.
Legal & General commented all four of its divisions were well-positioned to capitalise on structural market opportunities and to deliver profitable growth across the medium-to-long term, notwithstanding market volatility.
“We’ve made a good start to the year, with operating profit and EPS up 8%, cash and capital generation up double digits, DPS up 5% and a return on equity of 21%,” said Legal & General CEO Sir Nigel Wilson.
“We have delivered for our institutional clients and retail customers, while generating good volumes and margins in a buoyant PRT market and continuing to scale LGC at pace – both in the UK and now also in the US – originating assets for our own business and for third parties, whilst also delivering a positive outcome for the economies where we invest. Our balance sheet is strong and highly resilient, with a solvency ratio of 212% and with 100% of cash flows received from our Direct Investments.”
“We are committed to providing financial security for our customers and colleagues in a tough economic climate and remain confident in our ability to grow profits sustainably and at attractive returns over the long-term.”
Legal & General recommended a 5% HY1 2022 dividend hike to 5.4p compared to 5.1p in the previous year.
