Old Mutual share price: Group updates on interim trading
Old Mutual (LON:OML) today issued a trading update for the three months ended 31 March 2015.
**Highlights from the company’s statement:**
Operational performance for the Group
Gross sales of £7.3 billion, up 18%: Old Mutual Emerging Markets up 20% at £2.7 billion; Old Mutual Wealth up 16% at £4.6 billion
Net client cash flow (NCCF) of £0.5 billion (Q1 2014: £(0.5) billion): Old Mutual Emerging Markets £0.6 billion; Old Mutual Wealth £1.0 billion; OM Asset Management £(0.1) billion
Funds under management (FUM) up 10% to £351.4 billion; Nedbank had a strong quarter: Non-Interest Revenue up 18% and Net Interest Income up 4%
Strategic developments: Completed acquisition of Quilter Cheviot: Completed acquisition of 23.3% of East African financial services company UAP; agreed to acquire a further 37.3%; Completed disposal of Old Mutual Wealth businesses in France and Luxembourg
Julian Roberts, Group Chief Executive, commented: “This has been a very good start to the year, with all of our businesses performing well with continued strategic progress. Old Mutual is fully focused on operational execution as we look to secure the returns from the investments we have made to transform the Group.
“We continue to grow our franchise in emerging markets. It is particularly pleasing to see strong sales from our largest market of South Africa. Nedbank has had another excellent quarter with good growth in Non-Interest Revenue. Gross sales elsewhere in Africa grew by 34%.
“Old Mutual Wealth has had a solid start to the year and we are seeing continuing benefits from the vertically-integrated model, with Intrinsic and Quilter Cheviot performing well. Reflecting this, platform sales were up 15%, pension sales up 40%, ISA sales up 20% and FUM were over £100 billion at the quarter end.
“OM Asset Management, despite a small net cash outflow in the quarter, generated positive annualised revenue as a result of flows into high-margin global, non-U.S. and alternative products.
“While economic growth remains relatively weak in South Africa, our businesses continue to deliver good performance. We believe our vertically-integrated UK model is well positioned to take advantage of the changes to the UK pension regime. Overall we expect continued sound performance for the current year.”
**More to follow…**
As of 07:25 BST, Thursday, 14 May, Old Mutual plc share price is 227.20p.