Old Mutual Wealth has posted a pre-tax adjusted operating profit of £134m for the first half of 2017, a 29% jump compared to £104m in the year ago period.
The company’s pre-tax operating margin for the period ended 30 June 2017 stood at 30%, as against 28% last year.
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Its year-to-date funds under management (FUM) rose 10% to £127.3bn from £115.3bn a year ago. Net client cash flow (NCCF) surged 53% to £4.9bn from £3.2bn in the previous year, while gross sales increased 34% year-on-year to £14.1bn.
Profit at Old Mutual Global Investors (OMGI) was £59m in the first half of 2017, more than double compared to £25m in the first half of 2016. The company attributed the rise in profit to strong revenue growth and performance fees of £17m.
OMGI’s NCCF soared 106% to £3.3bn from £1.6bn the last year, while gross sales increased 31% to £8.2bn from £6.3bn a year ago. FUM at OMGI totalled £36.6bn as at 30 June 2017, up 17% from £31.4bn as at 31 December 2016.
The UK Platform’s profit was £20m in the first half of 2017, an increase of 43% compared to £14m in the previous year. FUM at the UK Platform was £45.9bn at the end of June 2017, up 11% from £41.4bn as at 31 December 2016. NCCF increased 50% to £2.1bn from £1.4bn a year ago, while gross sales surged 38% year-on-year to £4.4bn.
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By GlobalDataOn a reported basis, profit at Old Mutual International remained almost flat at £25m. FUM at the segment totalled £17.8bn at the end of June 2017, a 5% rise from £16.9bn as at 31 December 2016. NCCF doubled to £0.4bn from the previous year.
Profit at Quilter Cheviot AOP remained consistent at £24m. The segment’s NCCF jumped 50% to £0.6bn from £0.4bn the last year. FUM totalled £22.5bn at the end of June 2017, up 9% from £20.7bn as at 31 December 2016.
Old Mutual Wealth CEO Paul Feeney said: “I am pleased to report continued excellent progress on Old Mutual Wealth’s strategic ambition to become a leading, integrated, advice-led wealth management business. Net inflows were 11% of opening funds under management (H1 2016: 8%), excluding our Heritage closed book, demonstrating robust growth in a difficult environment, and well ahead of our 5% annualised target.”
Meanwhile, Old Mutual has announced plans to float its UK wealth management arm and a South Africa-based insurer as part of its managed separation process. The firm has also infused £200m into the wealth unit to brace up for the float.
The firm expects the ‘managed separation’ to conclude in 2018, after the release of its full-year results.
