SYDNEY (AFP) — Australian financial services group AXA Asia Pacific Holdings, which is 53 percent owned by France's AXA SA, announced Tuesday that its first half profit after tax had dropped 75 percent.
The retail fund manager reported after tax profit of 94.2 million dollars (87.2 million US) for the six months to June 30, down from 374 million dollars last year, after falls in equity markets.
"It is very difficult to predict how the current market will play out and the full extent of its impact on the economy," chief executive Andrew Penn said in a statement.
"In the meantime it will continue to be difficult for all of us in our industry."
The firm said operating earnings were up 11 percent to 295 million dollars from 266.2 million a year ago.
AXA Asia Pacific shares closed up 31 cents or 7.2 percent at 4.60 after investors were cheered by its better-than-expected operating profit.
The company provides wealth management and financial planning services as well as life insurance in Australia, New Zealand and Hong Kong, with emerging businesses in India, China and Southeast Asia.
"Hong Kong clearly remains an attractive market and an important growth engine for us in the region," said Penn.
"We have a very strong position and I believe we can take better advantage of it. This is a key priority for us."
The company's other Asian operations "continue to offer us exciting opportunities for growth," he said.
The company declared an interim dividend of 9.25 cents per share, the same as last year.
Copyright © 2009 AFP. All rights reserved. More »
