M&G H1 operating profits grow, swings to IFRS post-tax loss

(Sharecast News) - Investment manager M&G said on Thursday that it had swung to an IFRS post-tax loss in the first half of FY26, despite adjusted operating profits rising 15% to £435m, supported by £2.4bn of net inflows from open business and continued strength across its asset management division. M&G said its operating profit growth was driven by a 24% rise in asset management profits and 9% growth in its life unit. Asset management earnings rose to £159m, helped by higher recurring revenues of £565m, while life profits climbed to £375m as stronger PruFund and With‑Profits results offset weaker annuity contributions.

The FTSE 100-listd firm also reported £1.7bn of bulk purchase annuity flows by the end of August, marking rapid progress in the newly launched proposition.

However, M&G recorded an IFRS loss after tax of £165m, compared with a £248m profit last year, after £551m of adverse short‑term investment movements linked partly to proposed changes to ground‑rent legislation. The group's corporate centre posted a £99m loss, reflecting lower interest income and slightly higher head office costs.

M&G's interim dividend was set at 6.8p per share.

Looking ahead, M&G said it remained on track to meet its financial targets and now expects low double‑digit adjusted operating profit growth for the full year, supported by ongoing business momentum across both asset management and life.

As of 0850 BST, M&G shares were down 2.13% at 335.80p.





Reporting by Iain Gilbert at Sharecast.com

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