Legal & General Group's net annual profit declines
Financial services company remains upbeat, despite the figures.
The British financial services provider Legal & General Group has posted a net profit of £726m for the full year ended 31 December 2011, compared to £820m the previous year.
Total revenue declined to £18.32bn in 2011 from £38.44bn in 2010.
Total comprehensive income for the year was £661m (2010: £850m). Operating profit was £1.06bn in 2011. Net cash flows from operating activities were £1.54bn in 2011, compared to £2.71 in 2010.
Tim Breedon, group chief executive of Legal & General Group, was upbeat, saying: "Legal & General had a strong 2011. All four of our operating business divisions – risk, savings, investment management and international – delivered increased sales, cash generation and profits. Our balance sheet is strong and our outlook for 2012 positive."
Breedon added: "Following the combination of growth and strong cash generation, the board is recommending a full-year dividend of 6.40p per share – a 35 per cent increase. At this enhanced level, the dividend is 2.25 times covered by net cash generation."
"Our broad product range, diversified distribution and ability to deliver will enable us to grow the business, further enhance shareholder value, and take advantage of the opportunities created in a fast-changing market," concluded Breedon.