2017 Full Year Results

Full year results announcement

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Financial results ahead of expectations:


  • Pre-tax adjusted operating profit (AOP) of 2.0 billion up 22% (2016: 1.7 billion)
  • IFRS pre-tax profit for continuing operations of 617 million up 102% (2016: 306 million)
  • IFRS profit after tax attributable to equity holders of the parent of 909 million up 59% (2016: 570 million)
  • AOP earnings per share (EPS) of 24.3p up 25% (FY 2016: 19.4p), basic EPS of 19.3p up 61% (2016: 12.0p)
  • 2017 second interim dividend of 3.57p per share up 5%; Full year dividend of 7.10p per share up 17%
  • Adjusted Net Asset Value (ANAV) per share at 242.3p (2016: 228.6p)

All businesses have performed well:

  • Old Mutual Emerging Markets AOP R13.3 billion, up 5% (2016: R12.7 billion)
  • Nedbank reported AOP of R16.5 billion, up 4% (2016: R15.9 billion)
  • Old Mutual Wealth reported AOP 363 million, up 40% (2016: 260 million), (including 101 million of net performance fees from the single strategy business)

Update on standalone businesses:


OML:

OML has an ambition to become a premium financial services group in Sub-Saharan Africa. It currently offers a broad spectrum of financial solutions to retail and corporate customers across key market segments in 17 countries. It is well-positioned in South Africa, Africa's largest financial services market, and Southern Africa while having exposure to key growth markets in East and West Africa.

Targets (extracted from OML business outlook):

  • Results from Operations to grow at a CAGR of Nominal GDP + 2% over the three years to 2020. Nominal GDP growth is defined with reference to South Africa
  • Return on Net Asset Value of average cost of equity + 4%
  • R1.0 billion of pre-tax run-rate cost savings by end 2019, net of costs to achieve this
  • OML SAM ratio of 155-175% (post-Nedbank distribution); OMLAC(SA) SAM ratio greater than 200%; OMLAC(SA) Insurance business solvency ratio 180%-210%
  • Dividend policy: targeting FY ordinary dividends that are covered by Adjusted Headline Earnings between 1.75 and 2.25 times.

Quilter:

A leading Wealth Manager in the UK and selected offshore markets, providing advice-led investment solutions and access to investment platforms to over 900,000 customers, principally in the affluent segment. At Quilter's core is a multi-channel wealth proposition and strong investment performance driving integrated flows and long-term adviser and customer relationships.

Targets (extracted from Quilter business outlook):

  • NCCF (excluding Heritage) of 5% of opening AuMA per annum over the medium term
  • Subject to delivery of currently expected AuMA volumes and business mix, Quilter's overall annual rate of revenue margin decline should slow in the near-term and the revenue margin should become increasingly stable
  • Operating margin, before interest costs, of 30 per cent for the year ending 31 December 2020 before implementation of any future optimisation initiatives
  • Dividend policy: targeting a dividend pay-out range of 40 to 60% of post-tax operating profit. The first dividend payment which Quilter will make as a separately listed company is expected to be the final dividend in respect of the year ending 31 December 2018.

Old Mutual plc is a public company limited by shares, incorporated in England and Wales under registered number 3591559.
Registered Office: 5th Floor, Millennium Bridge House, 2 Lambeth Hill, London EC4V 4GG.

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