Last year, Old Mutual (OML) made strides towards the "managed separation" of its four underlying businesses: its US asset manager, its UK-centred wealth management business, its emerging markets segment, and South Africa-based Nedbank. The group sold 15m shares in the New York-listed asset manager to the public, reducing its stake in the business to 51 per cent. Old Mutual Wealth's Italian operations were also sold off. These transactions helped reduce company debt by £385m, which should reduce finance costs by £21m in 2017.
Despite tumultuous economic conditions in South Africa, Nedbank grew its operating profits by 6 per cent to £799m, as interest-earning assets increased. Its net interest margin grew 11 basis points to 3.41 per cent, thanks to higher interest rates. Keeping a tight control on costs and improved life and savings product sales also meant the emerging markets business managed to increase its contribution: the focus there will now be on expanding in sub-Saharan Africa.