Skandia UK sees profits fall 29% despite strong H1 for Old Mutual

Old Mutual saw profits climb in the first half, driven by cost cutting measures and the performance of its South African banking arm Nedbank, while Skandia saw its profits fall by nearly a third.

Over the six months to 30 June 2011 the firm made a pre-tax profit of £845m, a 15% increase, and saw funds under management edge up 1% to £302.8bn. Nedbank’s profits increased 31%, while it made an £82m cost saving. The group also reported strong growth in the UK, with sales of £2.8bn Old Mutual’s interim dividend increased 36% to 1.5p per share. Meanwhile, Skandia UK, part of Old Mutual Wealth Management, reported net sales of £1.3bn in the first half, driven by strong gross sales, primarily via the Skandia Investment Solutions platform. Overall, gross sales were up 4% to £3.4bn b...