In strong results, Old Mutual Wealth posts operating profits rise of 40% YoY

Old Mutual Wealth today posted strong net cash flows as part the company’s set of results for 2017, which revealed a rise of 40% in adjusted operating profit.

Due in part to strong growth within its advisory business and what the company described as “buoyant market conditions,” the solid results for the past year come as the company prepares to list as Quilter later this year.

Adjusted operating profit rose to £363m for the year ending 31 December 2017. Net client cash flows, or NCCFs, totaled £10.9bn, a rise of 110% on 2016. Within this, Quilter, Old Mutual’s nascent wealth management division, saw net cash flow rise by 96% on the previous year.

Operating profit for Old Mutual Wealth’s platform decreased 5% to £158m in 2017. Pre-tax normalised operating profit for the advice and wealth management arm was up 39% to £82m, attributed largely to continued success in the firm’s multi-asset business.

Strength to strength
Peter Kenny, managing director, Old Mutual International: “We have had a fantastic year, and our International business has gone from strength to strength. We have focused on developing our core growth markets, expanding our distribution footprint in these markets, and building our high net worth business.

“We have continued to benefit from strong support from our key brokers, but we have also successfully established new partnerships with a number of distributors, such as banks. Our proposition was refreshed in 2017 with the launch of several new offshore bond solutions, which have been well received, especially in the UK where offshore bonds are attracting a new client base following the tightening of a number of pension allowances. We continue to raise the bar in the international advice market, and helping advisers build a sustainable business model.”

Old Mutual Wealth’s chief executive Paul Feeney said the firm is now set to list as Quilter following the completion of its separation from Old Mutual.

Feeney said: “2017 was a great year for our business. We have attracted very high levels of net flows; our business model is proving a huge success in providing what customers want and our normalised profitability has been stable despite significant investment into the business ahead of our listing.”

Christopher Copper-Ind
Christopher Copper-Ind is Publisher and Editor of International Investment.

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