International Financial Reporting Standards (IFRS) basis results
Condensed consolidated income statement
Download Group summary as Excel file
| 2017 £m | 2016 £m | ||||
|---|---|---|---|---|---|
| Note | Half year | Half year | Full year | ||
| Earned premums, net of reinsurance | 21,158 | 17,394 | 36,961 | ||
| Investment return | 20,629 | 17,062 | 32,511 | ||
| Other income | 1,222 | 1,085 | 2,370 | ||
| Total revenue, net of reinsurance | B1.4 | 43,009 | 35,541 | 71,842 | |
| Benefits and claims and movement in unallocated surplus of with-profits funds, net of reinsurance | (35,442) | (30,939) | (59,366) | ||
| Acquisition costs and other expenditure | B3 | (5,330) | (3,563) | (8,848) | |
| Finance costs: interest on core structural borrowings of shareholder-financed operations | (216) | (169) | (360) | ||
| Disposal of Korea life business: | |||||
| Cumulative exchange gain recycled from other comprehensive income | D1 | 61 | – | – | |
| Remeasurement adjustments | D1 | 5 | – | (238) | |
| Total charges, net of reinsurance | (40,922) | (34,671) | (68,812) | ||
| Share of profits from joint ventures and associates, net of related tax | 120 | 86 | 182 | ||
| Profit before tax (being tax attributable to shareholders’ and policyholders’ returns)* | 2,207 | 956 | 3,212 | ||
| Less tax charge attributable to policyholders’ returns | (393) | (292) | (937) | ||
| Profit before tax attributable to shareholders | B1.1 | 1,814 | 664 | 2,275 | |
| Total tax charge attributable to policyholders and shareholders | B5 | (702) | (269) | (1,291) | |
| Adjustment to remove tax charge attributable to policyholders’ returns | 393 | 292 | 937 | ||
| Tax (charge) credit attributable to shareholders’ returns | B5 | (309) | 23 | (354) | |
| Profit for the period attributable to equity holders of the Company | 1,505 | 687 | 1,921 | ||
Download Condensed consolidated income statement - Earning per share (in pence) as Excel file
| 2017 | 2016 | ||||
|---|---|---|---|---|---|
| Earnings per share (in pence) | Note | Half year | Half year | Full year | |
| Based on profit attributable to the equity holders of the Company: | B6 | ||||
| Basic | 58.7p | 26.9p | 75.0p | ||
| Diluted | 58.6p | 26.8p | 75.0p | ||
Download Condensed consolidated income statement - Dividends per share (in pence) as Excel file
| 2017 | 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Dividends per share (in pence) | Note | Half year | Half year | Full year | |||||
|
* This measure is the formal profit before tax measure under IFRS but it is not the result attributable to shareholders. This is because the corporate taxes of the Group include those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, the profit before all taxes measure (which is determined after deducting the cost of policyholder benefits and movements in the liability for unallocated surplus of the PAC with-profits fund after adjusting for taxes borne by policyholders) is not representative of pre-tax profits attributable to shareholders. |
|||||||||
| Dividends relating to reporting period: | B7 | ||||||||
| First interim ordinary dividend | 14.50p | 12.93p | 12.93p | ||||||
| Second interim ordinary dividend | – | – | 30.57p | ||||||
| Total | 14.50p | 12.93p | 43.50p | ||||||
| Dividends paid in reporting period: | B7 | ||||||||
| Current year first interim ordinary dividend | – | – | 12.93p | ||||||
| Second interim ordinary dividend | 30.57p | 26.47p | 26.47p | ||||||
| Special dividend for prior year | – | 10.00p | 10.00p | ||||||
| Total | 30.57p | 36.47p | 49.40p | ||||||
Condensed consolidated statement of comprehensive income
Download Condensed consolidated statement of comprehensive incomeas Excel file
| 2017 £m | 2016 £m | ||||
|---|---|---|---|---|---|
| Note | Half year | Half year | Full year | ||
| Profit for the period | 1,505 | 687 | 1,921 | ||
| Other comprehensive income: | |||||
| Items that may be reclassified subsequently to profit or loss | |||||
| Exchange movements on foreign operations and net investment hedges: | |||||
| Exchange movements arising during the period | (220) | 798 | 1,148 | ||
| Cumulative exchange gain of Korea life business recycled through profit and loss | D1 | (61) | – | – | |
| Related tax | (4) | 8 | 13 | ||
| (285) | 806 | 1,161 | |||
| Net unrealised valuation movements on securities of US insurance operations classified as available-for-sale: | |||||
| Net unrealised holding gains arising during the period | 565 | 2,023 | 241 | ||
| Add back net losses (deduct net gains) included in the income statement on disposal and impairment | (34) | 95 | (269) | ||
| Total | C3.2(c) | 531 | 2,118 | (28) | |
| Related change in amortisation of deferred acquisition costs | C5(b) | (69) | (435) | 76 | |
| Related tax | (162) | (589) | (17) | ||
| 300 | 1,094 | 31 | |||
| Total | 15 | 1,900 | 1,192 | ||
| Items that will not be reclassified to profit or loss | |||||
| Shareholders’ share of actuarial gains and losses on defined benefit pension schemes: | |||||
| Gross | 53 | 11 | (107) | ||
| Related tax | (7) | (2) | 14 | ||
| 46 | 9 | (93) | |||
| Other comprehensive income for the period, net of related tax | 61 | 1,909 | 1,099 | ||
| Total comprehensive income for the period attributable to the equity holders of the Company | 1,566 | 2,596 | 3,020 | ||
Condensed consolidated statement of changes in equity
Download Condensed consolidated statement of changes in equity as Excel file
| Period ended 30 June 2017 £m | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Share capital note C9 | Share premium note C9 | Retained earnings | Translation reserve | Available-for-sale securities reserves | Share-holders’ equity | Non-controlling interests | Total equity | |||
| Reserves | |||||||||||
| Profit for the period | – | – | 1,505 | – | – | 1,505 | – | 1,505 | |||
| Other comprehensive income (loss) | – | – | 46 | (285) | 300 | 61 | – | 61 | |||
| Total comprehensive income (loss) for the period | – | – | 1,551 | (285) | 300 | 1,566 | – | 1,566 | |||
| Dividends | B7 | – | – | (786) | – | – | (786) | – | (786) | ||
| Reserve movements in respect of share-based payments | – | – | 22 | – | – | 22 | – | 22 | |||
| Share capital and share premium | |||||||||||
| New share capital subscribed | C9 | – | 10 | – | – | – | 10 | – | 10 | ||
| Treasury shares | |||||||||||
| Movement in own shares in respect of share-based payment plans | – | – | (12) | – | – | (12) | – | (12) | |||
| Movement in Prudential plc shares purchased by unit trusts consolidated under IFRS | – | – | (17) | – | – | (17) | – | (17) | |||
| Net increase (decrease) in equity | – | 10 | 758 | (285) | 300 | 783 | – | 783 | |||
| At beginning of period | 129 | 1,927 | 10,942 | 1,310 | 358 | 14,666 | 1 | 14,667 | |||
| At end of period | 129 | 1,937 | 11,700 | 1,025 | 658 | 15,449 | 1 | 15,450 | |||
Download Condensed consolidated statement of changes in equity - 30 June 2016 as Excel file
| Period ended 30 June 2016 £m | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Share capital note C9 | Share premium note C9 | Retained earnings | Translation reserve | Available-for-sale securities reserves | Share-holders’ equity | Non-controlling interests | Total equity | |||
| Reserves | |||||||||||
| Profit for the period | – | – | 687 | – | – | 687 | – | 687 | |||
| Other comprehensive income | – | – | 9 | 806 | 1,094 | 1,909 | – | 1,909 | |||
| Total comprehensive income for the period | – | – | 696 | 806 | 1,094 | 2,596 | – | 2,596 | |||
| Dividends | B7 | – | – | (935) | – | – | (935) | – | (935) | ||
| Reserve movements in respect of share-based payments | – | – | (54) | – | – | (54) | – | (54) | |||
| Share capital and share premium | |||||||||||
| New share capital subscribed | C9 | – | 6 | – | – | – | 6 | – | 6 | ||
| Treasury shares | |||||||||||
| Movement in own shares in respect of share-based payment plans | – | – | 22 | – | – | 22 | – | 22 | |||
| Movement in Prudential plc shares purchased by unit trusts consolidated under IFRS | – | – | 15 | – | – | 15 | – | 15 | |||
| Net increase (decrease) in equity | – | 6 | (256) | 806 | 1,094 | 1,650 | – | 1,650 | |||
| At beginning of period | 128 | 1,915 | 10,436 | 149 | 327 | 12,955 | 1 | 12,956 | |||
| At end of period | 128 | 1,921 | 10,180 | 955 | 1,421 | 14,605 | 1 | 14,606 | |||
Download Condensed consolidated statement of changes in equity - 31 December 2016 as Excel file
| Year ended 31 December 2016 £m | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Share capital note C9 | Share premium note C9 | Retained earnings | Translation reserve | Available-for-sale securities reserves | Share-holders’ equity | Non-controlling interests | Total equity | |||
| Reserves | |||||||||||
| Profit for the year | – | – | 1,921 | – | – | 1,921 | – | 1,921 | |||
| Other comprehensive income (loss) | – | – | (93) | 1,161 | 31 | 1,099 | – | 1,099 | |||
| Total comprehensive income for the year | – | – | 1,828 | 1,161 | 31 | 3,020 | – | 3,020 | |||
| Dividends | B7 | – | – | (1,267) | – | – | (1,267) | – | (1,267) | ||
| Reserve movements in respect of share-based payments | – | – | (51) | – | – | (51) | – | (51) | |||
| Share capital and share premium | |||||||||||
| New share capital subscribed | C9 | 1 | 12 | – | – | – | 13 | – | 13 | ||
| Treasury shares | |||||||||||
| Movement in own shares in respect of share-based payment plans | – | – | 2 | – | – | 2 | – | 2 | |||
| Movement in Prudential plc shares purchased by unit trusts consolidated under IFRS | – | – | (6) | – | – | (6) | – | (6) | |||
| Net increase in equity | 1 | 12 | 506 | 1,161 | 31 | 1,711 | – | 1,711 | |||
| At beginning of year | 128 | 1,915 | 10,436 | 149 | 327 | 12,955 | 1 | 12,956 | |||
| At end of year | 129 | 1,927 | 10,942 | 1,310 | 358 | 14,666 | 1 | 14,667 | |||
Condensed consolidated statement of financial position
Download Condensed consolidated statement of financial position as Excel file
| 2017 £m | 2016 £m | ||||
|---|---|---|---|---|---|
| Note | 30 Jun | 30 Jun | 31 Dec | ||
Included within equity securities and portfolio holdings in unit trusts, debt securities and other investments are £9,182 million of lent securities as at 30 June 2017 (30 June 2016: £8,162 million; 31 December 2016: £8,545 million). |
|||||
| Assets | |||||
| Goodwill | C5(a) | 1,501 | 1,677 | 1,628 | |
| Deferred acquisition costs and other intangible assets | C5(b) | 10,757 | 9,594 | 10,807 | |
| Property, plant and equipment | 727 | 1,214 | 743 | ||
| Reinsurers’ share of insurance contract liabilities | 9,709 | 9,470 | 10,051 | ||
| Deferred tax assets | C7 | 4,105 | 3,771 | 4,315 | |
| Current tax recoverable | 700 | 554 | 440 | ||
| Accrued investment income | 2,887 | 2,764 | 3,153 | ||
| Other debtors | 3,417 | 3,505 | 3,019 | ||
| Investment properties | 15,218 | 13,940 | 14,646 | ||
| Investment in joint ventures and associates accounted for using the equity method | 1,293 | 1,135 | 1,273 | ||
| Loans | C3.3 | 16,952 | 14,215 | 15,173 | |
| Equity securities and portfolio holdings in unit trusts | 210,437 | 176,037 | 198,552 | ||
| Debt securities | C3.2 | 170,793 | 168,367 | 170,458 | |
| Derivative assets | 3,789 | 5,495 | 3,936 | ||
| Other investments | 5,566 | 4,845 | 5,465 | ||
| Deposits | 13,353 | 14,181 | 12,185 | ||
| Assets held for sale | 33 | 30 | 4,589 | ||
| Cash and cash equivalents | 9,893 | 8,530 | 10,065 | ||
| Total assets | C1 | 481,130 | 439,324 | 470,498 | |
| Equity | |||||
| Shareholders’ equity | 15,449 | 14,605 | 14,666 | ||
| Non-controlling interests | 1 | 1 | 1 | ||
| Total equity | 15,450 | 14,606 | 14,667 | ||
| Liabilities | |||||
| Contract liabilities (including amounts in respect of contracts classified as investment contracts under IFRS 4) | C4.1(a) | 398,980 | 362,510 | 388,996 | |
| Unallocated surplus of with-profits funds | C4.1(a) | 15,090 | 13,597 | 14,317 | |
| Core structural borrowings of shareholder-financed operations | C6.1 | 6,614 | 5,966 | 6,798 | |
| Operational borrowings attributable to shareholder-financed operations | C6.2(a) | 2,096 | 2,798 | 2,317 | |
| Borrowings attributable to with-profits operations | C6.2(b) | 3,336 | 1,427 | 1,349 | |
| Obligations under funding, securities lending and sale and repurchase agreements | 6,408 | 4,963 | 5,031 | ||
| Net asset value attributable to unit holders of consolidated unit trusts and similar funds | 8,577 | 8,770 | 8,687 | ||
| Deferred tax liabilities | C7 | 5,683 | 5,397 | 5,370 | |
| Current tax liabilities | 743 | 566 | 649 | ||
| Accruals, deferred income and other liabilities | 14,524 | 12,915 | 13,825 | ||
| Provisions | 759 | 467 | 947 | ||
| Derivative liabilities | 2,870 | 5,342 | 3,252 | ||
| Liabilities held for sale | – | – | 4,293 | ||
| Total liabilities | C1 | 465,680 | 424,718 | 455,831 | |
| Total equity and liabilities | 481,130 | 439,324 | 470,498 | ||
Condensed consolidated statement of cash flows
Download Condensed consolidated statement of cash flows as Excel file
| 2017 £m | 2016 £m | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Note | Half year | Half year | Full year | |||||||||||||||||
Notes
|
||||||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||||||
| Profit before tax (being tax attributable to shareholders’ and policyholders’ returns)note (i) | 2,207 | 956 | 3,212 | |||||||||||||||||
| Non-cash movements in operating assets and liabilities reflected in profit before tax: | ||||||||||||||||||||
| Other non-investment and non-cash assets | (550) | (2,660) | (2,490) | |||||||||||||||||
| Investments | (26,539) | (21,280) | (37,824) | |||||||||||||||||
| Policyholder liabilities (including unallocated surplus) | 21,597 | 19,548 | 31,135 | |||||||||||||||||
| Other liabilities (including operational borrowings) | 3,390 | 3,836 | 7,861 | |||||||||||||||||
| Other itemsnote (ii) | (15) | 403 | 307 | |||||||||||||||||
| Net cash flows from operating activities | 90 | 803 | 2,201 | |||||||||||||||||
| Cash flows from investing activities | ||||||||||||||||||||
| Net cash outflows from purchases and disposals of property, plant and equipment | (56) | (32) | (246) | |||||||||||||||||
| Net cash inflows (outflows) from corporate transactionsnote (iii) | 813 | (302) | (303) | |||||||||||||||||
| Net cash flows from investing activities | 757 | (334) | (549) | |||||||||||||||||
| Cash flows from financing activities | ||||||||||||||||||||
| Structural borrowings of the Group: | ||||||||||||||||||||
| Shareholder-financed operations:note (iv) | C6.1 | |||||||||||||||||||
| Issue of subordinated debt, net of costs | – | 681 | 1,227 | |||||||||||||||||
| Interest paid | (207) | (160) | (335) | |||||||||||||||||
| With-profits operations:note (v) | C6.2 | |||||||||||||||||||
| Interest paid | (4) | (4) | (9) | |||||||||||||||||
| Equity capital: | ||||||||||||||||||||
| Issues of ordinary share capital | 10 | 6 | 13 | |||||||||||||||||
| Dividends paid | (786) | (935) | (1,267) | |||||||||||||||||
| Net cash flows from financing activities | (987) | (412) | (371) | |||||||||||||||||
| Net (decrease) increase in cash and cash equivalents | (140) | 57 | 1,281 | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 10,065 | 7,782 | 7,782 | |||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (32) | 691 | 1,002 | |||||||||||||||||
| Cash and cash equivalents at end of period | 9,893 | 8,530 | 10,065 | |||||||||||||||||
