Old Mutual plc Interim results for the six months ended 30 June 2012
Good strategic and operational progress
|
Financial Summary |
H1 2012 |
H1 2011 |
Movement |
|
|
Operating metrics - constant currency basis |
||||
|
Adjusted operating profit before tax (IFRS basis) |
791m |
709m |
12% |
|
|
Adjusted operating earnings per share (IFRS basis) |
8.7p |
8.5p |
2% |
|
|
Net client cash flows - LTS |
1.4bn |
2.0bn |
(0.6)bn |
|
|
Net client cash flows - USAM |
2.2bn |
(2.0bn) |
4.2bn |
|
|
Funds under management |
260.7bn |
264.7bn |
(2)% |
|
|
Financial metrics - as reported |
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|
Group return on equity (annualised) |
12.9% |
15.1% |
(220bps) |
|
|
Interim dividend for the year |
1.75p |
1.50p |
17% |
|
|
Total profit after tax attributable to equity holders of the parent |
931m |
738m |
26% |
|
|
Adjusted Group MCEV per share |
218.1p |
194.1p |
24.0p |
|
|
Surplus generated |
381m |
521m |
(140)m |
Financial and operational highlights
- IFRS AOP up 12% to 791 million; interim dividend up 17%; and core continuing Group NCCF of 4.4 billion
- Targets: cost reduction met; ROE and margins on track
- A further 603 million of debt repaid in 2012, less than 450 million left to hit 1.5 billion target
- Completion of sale of Nordic and 1 billion special dividend paid 7 June 2012
Expanding our African footprint
- Continued strong sales and margins in South African mass market, and excellent sales momentum in emerging markets
- Nigerian life acquisition expected to complete Q3; and considering entry into the Nigerian non-Life market
- Nedbank delivers another excellent six months, driven by growth in NII, NIR and improved impairments
Growing Wealth Management
- Merger of OMAM UK and Skandia Investment Group to create asset management engine to power Wealth Management
- UK Platform 1.2 billion NCCF
- Post-RDR pricing structure for UK Platform unveiled
- Turning around US Asset Management
- Positive NCCF of 2.2 billion
- Continued trend of improved investment performance; margins strengthening
Julian Roberts, Group Chief Executive, commented:
"Against a backdrop of sustained low growth and falling interest rates we continue to deliver good strategic and operational progress. We are expanding in attractive African markets; introducing new products across the Group; and today are unveiling our UK Platform pricing ahead of the introduction of the Retail Distribution Review.
"We have built a portfolio of resilient, high quality and cash generative businesses. Although economic conditions remain uncertain, we remain confident that we have the right offering, the right people and exposure to both emerging and developed markets that will allow us to continue to create value for both shareholders and customers."
