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Old Mutual’s after tax profit decline

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LONDON-LISTED financial services group Old Mutual’s after tax profit declined to £983 million for the year ended December 31 2013

LONDON-LISTED financial services group Old Mutual’s after tax profit declined to £983 million for the year ended December 31 2013 as compared to £1,478 billion in 2012 due to decline in revenue.

By Tarisai Mandizha Business Reporter

In the period under review, revenue declined to £19,8 million from £20, 092 million during the same period last in 2012.

According to the statement accompanying the group’s preliminary results for the twelve months ended December 31, 2013, Old Mutual PLC chief executive officer Julian Roberts said the group recorded a profit growth of 15% to £1, 6 billion on a constant currency basis, and flat on a reported basis.

“I am delighted with the way Old Mutual has performed this year notwithstanding the volatility of the rand. We have seen positive net client cash flows into all of our businesses totaling £15,5 billion which is testament to our attractive customer propositions.”

In the period under review, gross sales were up 17% to more than £25 billion, with funds under management (FUM) up 19% to £293,8 billion on a constant currency basis.

“We are making excellent progress against our strategic objectives. We are growing in South Africa, with more than 750 000 new Old Mutual and Nedbank customers. We have taken significant steps in our goal of becoming Africa’s financial services champion, with new businesses in East and West Africa and nearly 600 000 new customers,” Roberts.

During the period under review, Adjusted Operating Profit (AOP) earnings per share was 18,4 pence up 21% in constant currency and 5% in reported currency.

“I am excited about the prospects of Old Mutual wealth which with the acquisition of intrinsic and our strengthened asset management capability now has the foundations to become the leading retail investment business in the UK. We have announced today that we intend to proceed with a minority IPO of the US Asset Management in 2014, subject to market conditions,” Roberts said.

He, however, said the group has a clear strategy and clear priorities which will focus on achieving.

He added that although the external environment was likely to remain uncertain and with the impact of the movement of the rand on the groups reported results the long term structural growth trends in Africa and strong demand for banking, protection and savings products remain intact and will continue to drive sustainable and profitable growth for Old Mutual.