Old Mutual Wealth's profits drop 31% despite 'strong' inflows at OMGI

Updates on its 'managed separation'

Old Mutual Wealth has reported a 31% profits fall for the first half of the year, compared to the same period in 2015, despite "very strong" net client cash flows, as company results also reveal parent firm Old Mutual has identified an additional 60 jobs to cut in the London head office.

Old Mutual Wealth delivered an adjusted operating profit of £104m for the six months to the end of June, 31% lower than the £151m reported for the first half of last year due to "operational challenges and tough markets". In particular, it highlighted a £21m charge from changes to customer fees in its Heritage book and lower operating margins. As a result of this and a wider profits fall at the group, Old Mutual shares dropped over 5% in London this morning, to trade around 212.1p at 9am. However, net client cash flows were up 39% to £3.2bn, in a period which saw many larger asset man...