Financial Performance - The company achieved double-digit growth across key financial metrics, with new business profit increasing by 12% to $1.3 billion and operating profit after tax per share growing by 12% [3][28][29] - Gross operating free surplus generation grew by 14%, marking an inflection point in capital generation [4][29] - The dividend per share increased by 13% to 7.71¢, with a commitment to greater than 10% annual growth from 2025 to 2027 [4][29][31] Business Lines Performance - New business profit in Hong Kong rose by 16%, driven by growth in both agency and bank assurance channels [9][32] - Indonesia saw exceptional growth with new business profit up 34%, while Malaysia experienced a decline due to lower agency contributions [11][32][33] - The health business reported a 13% increase in new business profit, supported by innovative product development [15][35] Market Performance - The company reported strong growth in key markets, with 13 out of 19 life markets showing new business profit growth [32] - In Singapore, new business profit grew by 5%, while Vietnam faced challenges impacting performance [11][12][32] - The agency channel contributed 55% of new business profit, highlighting its importance in the distribution model [17][19] Strategic Direction and Industry Competition - The company is focused on high-quality sustainable growth and enhancing shareholder returns through a disciplined capital allocation framework [2][5] - Investments in technology and capabilities are aimed at improving customer engagement and operational effectiveness [21][22] - The strategic focus includes strengthening the agency force and expanding bank assurance partnerships [7][9][18] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance and 2027 objectives, despite ongoing market volatility [2][26] - The long-term growth fundamentals in Asia and Africa are seen as significant opportunities for the company [24][56] - The company is committed to writing high-quality new business, particularly in health and protection sectors [23][54] Other Important Information - The company has initiated a $2 billion share buyback program, with $850 million completed as of August 18 [4][5] - A potential IPO of the Indian asset management business could provide additional capital returns to shareholders [6][31][53] - The company has invested $400 million in modernizing technology and capabilities since 2023 [20][21] Q&A Session Summary Question: What are the growth expectations for the company in the coming years? - The company is confident in achieving double-digit growth in capital generation beyond 2027, supported by strong positioning in growth markets [49][56] Question: How is the company addressing challenges in specific markets? - The company has clear plans to rebuild momentum in Malaysia and Vietnam, focusing on improving agency performance and market strategies [20][32]

Financial Data and Key Metrics Changes - Capital generation reached $222 million, up 63% year over year [6][21] - C and I adjusted earnings were $1.45 per share, up 42% [6][21] - Total revenue grew 10% year over year [6][24] - Receivables grew 7% year over year, surpassing $25 billion for the first time [6][21] Business Line Data and Key Metrics Changes - Originations increased by 9%, driven by enhanced data analytics and product innovations [7][23] - Credit card receivables reached $752 million, up 61% year over year [12][21] - Auto finance receivables grew to over $2.6 billion, with quarterly originations up 29% [14][21] Market Data and Key Metrics Changes - 30 plus delinquency rate was 5.07%, down 29 basis points year over year [7][27] - C and I net charge offs were 7.6%, down 88 basis points year over year [29] - Consumer loan net charge offs were 7.2%, down 110 basis points year over year [29] Company Strategy and Development Direction - The company focuses on responsible credit access and disciplined credit management [5][17] - Strategic initiatives include enhancing product offerings and improving customer experience [11][12] - The company aims to grow its credit card business conservatively while maintaining a strong balance sheet [13][17] Management Comments on Operating Environment and Future Outlook - The macroeconomic environment remains stable, with a resilient non-prime consumer supported by a solid labor market [15][16] - Management expressed confidence in the business model and strategic initiatives, anticipating significant capital generation growth in 2025 [40][38] - The company expects a more normalized mid-single-digit growth in originations for the second half of the year [23][68] Other Important Information - The company raised $1.8 billion in the quarter through ABS and unsecured markets, enhancing liquidity [20][36] - Operating expenses were $415 million, up 11% year over year, aligned with receivables growth [33][34] - The company repurchased 460,000 shares at an average price below $46 per share [18][21] Q&A Session Summary Question: Can you discuss the competitive dynamics driving your origination growth? - Management noted a constructive competitive environment with strong origination growth despite a tight credit box, emphasizing their ability to maintain competitive pricing [44][46] Question: How do you plan to deploy stronger capital generation in the next 6-12 months? - The company prioritizes building a great business, paying dividends, and considering share repurchases or strategic investments based on capital generation [49][51] Question: What is the expected timing for the credit card portfolio to reach similar returns as personal loans? - Management indicated that while they are not providing specific guidance, they expect card yields to remain above 30% and are focused on perfecting the product before accelerating growth [55][59] Question: How is the macroeconomic environment affecting your consumer base? - Management stated that the non-prime consumer has remained stable, with improved net disposable income compared to previous periods [82][85] Question: Are there signs of increased price competition in the market? - Management acknowledged the presence of competition but emphasized their disciplined approach to maintaining credit quality and customer value [90][92]