Legal & General shares nudged up by solid but not spectacular first half

Legal & General (LSE:LGEN) shares were steady on Wednesday after the financial services firm reported expectedly positive financial results for the first half of 2024.

Core operating profit came in at £849 million, ahead of forecast, whilst operating profit was slightly lower than last year at £920 million.

The firm raised its first-half dividend to 6p per share, from 5.71p, and it is also rewarding shareholders with a £200 million share buyback – which is Legal & General’s first buyback for more than a decade.

“In June we set out our strategy to deliver L&G's next phase of sustainable growth and enhanced returns, through focused capital allocation and rigour in execution,” said chief executive António Simões.

He added: “We are making clear progress on delivering against our strategy, notably in the establishment of a single asset manager.

“We have good momentum in private markets, launching a new fund to offer diversified exposure to Defined Contribution pension scheme members, and establishing our Affordable Housing fund, leveraging pension capital to build new homes.

“These developments are important steps forward for L&G, reflecting our commitment to helping address the long-term investment needs of individuals and society, and create compelling opportunities for partners to invest alongside us to generate positive change.”

Legal & General, meanwhile, noted that its assets under management fell 3% to £1.14 trillion, primarily due to external net outflows of £28.5 billion.

Adam Vettese, analyst at investment platform eToro, described the results as “very steady if not uneventful”.

In a note. Vettese said: “Arguably this is exactly the kind of news investors want to hear after the week they have had given the recent global sell-off.”

Legal & General shares were up 1.29% at Wednesday's close priced at 219.50p.