Old Mutual 2014 operating profit rises 16% - CNBC Africa

Old Mutual 2014 operating profit rises 16%

Earnings

by Reuters 0

Financial services firm Old Mutual said its operating profit for 2014 rose 16 per cent to 1.6 billion pounds ($2.5 billion). PHOTO: Times UK

This was helped by improving economic growth in Britain and the United States.

The firm, which has a majority stake in South Africa's [DATA NED:Nedbank], said economic conditions in South Africa remained relatively weak, but equity markets performed strongly and low oil prices could help the South African consumer.

Adjusted operating pre-tax profits were forecast at 1.56 billion pounds in a poll provided by the company.

Net client cash flow came in at 4.9 billion pounds, with funds under management rising 6 percent in constant currency terms to 319 billion pounds.

[DATA OML:Old Mutual] brought its fund management arm OM Asset Management to market last year, but still owns 78 percent of it.

Its wealth arm bought money manager Quilter Cheviot for 585 million pounds late last year, enabling it to target high net worth clients.

Nedbank also bought a 20 per cent stake in African bank Ecobank last year and announced plans to buy a majority stake in Kenyan insurance firm UAP Holdings.

"Our focus now is on integrating the acquisitions, delivering operational improvements and creating value from these investments," the company said in a trading statement.

Old Mutual said it would pay a final dividend of 6.25 pence per share, with a total dividend of 8.7 pence, in line with forecasts.

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