Confident forecast

M&G profits leap after strong inflows and cost cuts

M&G Kildean
M&G’s offices in Stirling

Wealth manager M&G, which has seen a series of senior staff changes, posted a 28% rise in adjusted annual operating profit before tax to £797 million.

Net client inflows came in at £1.1 billion and the company is “well positioned to navigate the current uncertain economic climate,” it said. The board recommended a slight hike in the total dividend to 19.7p from 19.6p.

Chief executive Andrea Rossi said: “M&G has performed very well in 2023. Today’s results show positive business momentum and meaningful improvements across key financial metrics. Net client flows, adjusted operating profit, operating capital generation, and the shareholder Solvency II ratio are all up materially year-on-year.

“This financial performance underscores the importance of our balanced and diversified business model, with strong growth achieved despite continued macroeconomic uncertainty. The contribution to earnings from our Life and Wealth operations increased meaningfully year-on-year, while Asset Management showed great resilience delivering net client inflows of £0.8bn at a time when the market for active investment solutions suffered significant redemptions.

“I am also very pleased with our operational progress in the first full year since outlining our three strategic priorities: Financial Strength, Simplification and Growth. We took steps forward on our business targets, and in particular, we are well placed to achieve our three-year cumulative operating capital generation of £2.5 billion by the end of the year.

“As we look ahead, I am confident about the prospects for M&G as we remain focused on executing our strategic plan. Our diversified business model puts us in an excellent position to continue delivering attractive outcomes for both our clients and shareholders over the long-term.”

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