Anglo-South African financial services group Old Mutual reported a 20 percent rise in first-half operating profits, beating forecasts thanks to a strong performance at its African, wealth and fund management units. The results are the last for outgoing Chief Executive Julian Roberts, who makes way for Standard Bank executive Bruce Hemphill later in the year after a period of strong growth in which it has put greater emphasis on boosting asset inflows.
"Across the group it's been a very good first half," said Roberts, citing the higher operating profit of 904 million pounds ($1.41 billion), up from 755 million pounds a year ago and ahead of a consensus market forecast of 850 million pounds. The firm said it would pay a dividend of 2.65 pence a share, up 8 percent and above the consensus forecast for 2.62 pence.
In response, shares in Old Mutual rose to the top of the FTSE 100 leaderboard, up 2.6 percent at 224 pence a share, when the index was down 0.3 percent. Underpinning the profit boost were strong performances from across its various units, with net client cash flow into its UK business at 2.3 billion pounds and profits at its wealth management unit up 26 percent. Profits in South Africa rose 14 percent, and in the rest of Africa rose 31 percent.
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