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Australian $20 notes - Source: Reuters -
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AXA Asia Pacific Holdings Ltd (AXA APH), the target of two competing takeover offers, says full-year operating earnings fell slightly in 2009, mainly on a weaker performance in Australia and New Zealand.
Operating earnings for the year, before auditing and board consideration, were $AU550 million, compared with the $AU555.6 million in 2008, Melbourne-based AXA APH said in a statement on Thursday.
The wealth manager expects profit after tax and non-recurring items to be about $AU675 million, compared with a loss of $AU278.7 million in 2008.
AXA APH's operating earnings grew in Hong Kong and South East Asia.
But earnings declined in Australia and New Zealand as average funds under management were about 25% lower than in 2008, although they earnings did improve in the second half.
AXA APH chief executive Andrew Penn said he was pleased with the result.
"I am pleased with our strong performance, particularly in the second half of 2009," Penn said in the statement.
"We have responded well to the impacts of the global financial crisis and the earnings of all of our businesses have accelerated since the first half of 2009."
The earnings update to the market comes ahead of February 6, when an exclusivity agreement between AMP Ltd and France's AXA SA, which made a joint bid for AXA APH last year, comes to an end.
Otherwise AXA APH's earnings figures would have become available when it reported on February 17.
In December, National Australia Bank Ltd (NAB) made a surprise $AU13.3 billion takeover bid for AXA APH, with the aim of trumping the earlier proposal from AMP and AXA SA, the majority owner of the target.
AMP and AXA SA had made a combined proposal, whereby AMP would buy all of AXA APH, then on-sell the Asian assets to AXA SA, while keeping the Australian and New Zealand assets.
AMP's bid failed to win over AXA APH's independent directors, something NAB succeeded in doing by offering an all-cash alternative.
AXA APH's net profit figure benefitted from investment earnings of about $185 million as equity markets staged a huge recovery in 2009.
Investment performance was a negative $537.7 million in 2008 as equities slumped during the global financial crisis.
The company also benefitted from non-recurring items by $AU57 million.
In 2008, non-recurring items cost the company $AU152.8 million.
Shares in AXA APH were steady at $AU6.60 as of 1108 AEDT.
NAB's all-cash offer values AXA APH at $AU6.43 a share. AMP and AXA SA's increased offer on December 14, which they said was their last, currently values the target at $AU6.44, given AMP's share price of $AU6.56.
