Wealth manager M&G said it was confident that it would navigate market volatility and has adopted a progressive dividend policy.

The firm, which has significant operations in Edinburgh and Stirling, posted a 5% rise in adjusted operating profit before tax to £837 million (2023: £797 million).

This reflects a 19% increase in the asset management contribution and stable results from the life and corporate centre divisions.

The 2024 second interim dividend of 13.5 pence per share (2023: 13.2 pence per share) takes the total dividend for the year to 20.1 pence, up 2% year-on-year, in line with the new progressive dividend policy. The second interim dividend is payable on 9 May 2025.

The group said increased geopolitical uncertainty and market volatility continue to weigh on client sentiment and pose a significant challenge to financial institutions across the globe. It said it is ‘confident that we can navigate this uncertain environment by leveraging our balanced and integrated business model which we believe will remain a source of competitive advantage.”

Andrea Rossi, group chief executive, said: “Since starting at M&G, my priority has been to strengthen the foundations of the business. Despite a tough market environment we have done this.

“In 2024 we have reduced debt, simplified our operating model, grown Asset Management adjusted operating profit by nearly 20%, and continued to drive positive momentum in Life, completing £0.9 billion of bulk purchase annuity deals and launching a new innovative solution.

“We are now moving into a new phase for the Group, where we will deliver sustainable and diversified growth across Asset Management and Life. In line with this ambition, we are today announcing two new targets for 2025-2027: to grow adjusted operating profit before tax on average by 5% or more per annum, and to generate £2.7 billion of operating capital.

“We also remain focused on operational efficiency as demonstrated by the reduction in the Asset Management Cost-to-Income ratio from 79% to 76% excluding performance fees and the £188 million cost savings delivered by our transformation programme so far.

“We are not resting there and are upgrading our cost target, for the second time, from £220 million to £230 million by the end of 2025.

“Given our confidence in the outlook of M&G, I am delighted to announce that today we are moving to a progressive dividend policy, starting with a 2% increase for the 2024 total dividend per share.

“As we look ahead, the strong foundations we have built position us well to continue to deliver long-term value to our customers and clients and diversified profitable growth to shareholders.”