Up to now, 2024 has been dismal for FTSE 100 monetary providers big Prudential (LSE: PRU). The Prudential share price has fallen 23% because the begin of the 12 months. As I write this on Wednesday morning (28 August), following the discharge of the corporate’s half-year outcomes, the shares are down barely in early buying and selling.

But I believe there’s a lot to love right here as an investor. A lot, the truth is, that I’ve been shopping for Prudential shares this 12 months.

So, simply what’s going on with the share price?

Difficult markets harm the funding case

A part of the enchantment of Prudential from my perspective as an investor is its robust place in growing markets that might hopefully see quick development in demand for its merchandise. A few of these markets stay largely untapped.

However the previous a number of years have seen uneven efficiency in Asian economies. That has solid some doubt on how good Prudential’s plan is.

Revenues within the first half fell in comparison with the prior 12 months interval, albeit by just one%. In the meantime, earnings after tax (on an Worldwide Monetary Reporting Requirements foundation) crashed over four-fifths in comparison with the primary half final 12 months. Ouch.

Numerous that revenue fall was pinned on short-term fluctuations in funding returns. However even apart from that, earnings fell in some key markets. That included a 9% year-on-year decline within the Pru’s greatest market, Hong Kong. I see a threat that ongoing financial uncertainty in East Asia may eat into revenues and earnings.

It was not all unhealthy information. Singapore, already a big market, confirmed post-tax earnings 27% greater than the identical interval final 12 months. Nonetheless, the outcomes present a enterprise battling unsure demand tendencies in key markets.

I additionally didn’t admire the corporate’s lack of self-awareness in its reporting. Its description of its “resilient performance in the first half” makes me ponder whether administration is totally engaged with the fact of a enterprise that noticed revenues decline and earnings crash. That isn’t my definition of resilience!

Nonetheless quite a bit to love right here

Regardless of that, I’m a long-term purchaser of shares and on that foundation I believe the funding case for Prudential stays robust, particularly on the present share price.

The interim dividend grew 9% and over the long run I see substantial room for additional revenue development as that is usually a really money generative enterprise. Prudential has recognized monetary providers areas by which it has a robust status. It’s concentrating on markets which have massive numbers of potential prospects and that in some instances proceed to supply restricted competitors.

The Pru has been growing proprietary applied sciences that over time must deliver down the price of gross sales, hopefully serving to profitability. As we speak the corporate affirmed its ongoing confidence in an bold goal to ship 15%-20% in compounded annual development for brand new enterprise revenue and double-digit compounded annual development in money technology (each measured from a 2022 base).

I believe the corporate has the muse for a wonderful long-term development story. The present Prudential share price doesn’t replicate that totally, for my part.

I proceed to see it as a long-term discount and plan to maintain holding.