Prudential shareholders expect 5% rise in dividend

Prudential shareholders could pocket a 5 per cent increase in their dividend payout on Thursday when the insurer reports its half-year results.

The Pru, headed by chief executive Tidjane Thiam, is expected to report healthy figures after a torrid six months which saw the collapse of a proposed $35.5bn purchase of AIG's Asian buisinesses. Analysts at JP Morgan have forecast the figures will show "strong" growth in the enterprise value – an important measure of a company's worth – of 8 per cent during the first six months. Rivals are not expected to show any major growth. JP Morgan said it expected the Pru's Asia business to deliver strong sales and growth in the US and UK.

Prudential already reported a 26 per cent rise in first-quarter sales to £807m and new business profit up 27 per cent to £427m. Rival Standard Life is also expected to forecast strong second-quarter sales. Other companies reporting interim results include paper and packaging group Mondi and Intercontinental Hotels which is expected to show a pre-tax profit of $180m.

After last week's decision by the Bank of England's Monetary Policy Committee to hold interest rates at 0.5 per cent the market will be watching the bank's quarterly inflation report on Wednesday.