THE LOJ Group produced net profits after taxes, attributable to stockholders, of $1.6 billion for the nine months to September 30, 2005.
This was 72 per cent better than the $930 million recorded for the same period in 2004. These unaudited profits were generated on revenues of $8.6 billion (2004: $5.3 billion).
The basic earnings per stock unit for the period under review was $0.48 (2004: $0.37) and $0.46 on a fully diluted basis (2004: $0.34).
The basic earnings per stock unit was calculated on the basis of a weighted average number of 3,329,659,549 shares outstanding for the period.
Ordinary shares in issue grew from 2,543,690,130 at December 2004 to 3,716,910,925 at the end of September 2005.
These results include the consolidation of PCFS revenues, expenses, assets and liabilities and 51 per cent of that company's profits for nine months.
The results also include the First Life insurance and pension management business for the six months period April to September 2005.
NEGATIVE INFLUENCE
The results were negatively influenced by lower interest rates and financing costs of $26.9 million associated with the acquisition of PCFS shares.
Balancing those effects were the positives of good new business growth, a high renewal rate for annual Group insurance contracts, realised capital gains from the sale of certain securities and favourable mortality and morbidity experience.
The individual life division continued to generate strong new business. New annualised premium income was 15 per cent better than for the 2004 period.
The employee benefits division also registered strong sales and a high contract renewal rate during the period. Both divisions contributed as expected to the group's profit outcome.
PCFS's performance for the period was also good. The banking group met its net interest income targets while revenue from fees and commissions were better than expected.
The $26.9 million of financing costs associated with the purchase of the 43 per cent share in PCFS will not recur in future results as the debt has been cleared.
