Old Mutual cuts costs

Management has identified up to 60 more roles to cut from head office by the end of the year, which will take the reduction in headcount to 50 per cent and run-rate savings to £10m. Paying debt down is also a priority and management has accelerated the asset management arm's purchase of the seed capital provided by the plc, as well as the termination of the deferred tax arrangement between the two entities. Taken together, this is expected to release around $270m to $280m (£208m to £216m) between 2016 and 2018.

However, regulation, currency and volatile markets also gave management a lot to contend with during the period. The average value of the rand declined by more than a fifth against sterling, putting pressure on profits for South African-based Nedbank and the emerging markets division. Adjusted operating profit for the latter fell 5 per cent, largely as a result of increased insurance claims from South African corporates as well as property and casualty clients. However, performance was better for Nedbank, with fewer impairment charges helping improve its credit loss ratio from 0.77 per cent to 0.67 per cent. An increase in banking assets also lifted net interest income 12 per cent to R13bn (£0.8bn).

For Old Mutual Wealth a £21m exceptional charge relating to capping exit fees to 1 per cent at its Heritage business dampened profits. However, strong inflows into strategies including global equity absolute return and North America equity helped lift overall funds under management 7 per cent to £111bn. Over the pond, volatile markets meant performance and management fees declined. Falling revenue from US and global equity products helped pull adjusted operating profits for the asset management business down 17 per cent to $91m (£70m).

Analysts at Investec expect adjusted EPS of 17p in the 12 months to December 2016, down from 19.3p the previous year.