Further strategic progress and a resilient operational performance
Funds under management in core operations up 4% to 263.3 billion
Q3 NCCF outflows narrowed to (0.5) billion from (5.4) billion
Continued business improvement and strategic delivery:
- 1.5 billion debt repayment target met;
- Further repositioning of USAM affiliate portfolio;
- Reorganisation of Old Mutual Wealth;
- Finnish sale completed; Austrian and German operations closing to new business;
- Terms agreed for Nigerian P&C acquisition from Ecobank for around $20 million.
Julian Roberts, Group Chief Executive, commented:
"This has been another quarter of good operational progress overall with a strong performance in emerging markets.
"Our sales during the period highlight the growing shift from traditional life products to modern investment products, including unit trusts and mutual funds, with these sales up 19% in Emerging Markets and 7%, on a comparable basis, in Wealth.
"In South Africa our mass foundation business continued to grow and APE sales across Emerging Markets saw a double-digit increase.
"Although UK savings trends remain depressed by low consumer confidence and pressure on household finances, our performance in the UK and International was encouraging, with gross sales of 2.8 billion in the quarter. We are progressing well with our plans to build Old Mutual Wealth into a leading wealth manager and are taking further steps to address its cost base.
"Nedbank has maintained its progress with positive margins, strong growth in non-interest revenue and continued reductions in credit losses.
"In the short term, the sector will continue to be challenged by external factors but we will continue to develop products and services that our customers want, drive efficiency improvements throughout our business and, as a result, deliver sustainable value for shareholders."