CEO, Julian Roberts singled out Nedbank’s strong 26.2% growth in headline earnings to R6,184 billion from R4,900 in 2010, driven mainly by a 16,6% growth in non-interest income , increasing net interest margins and an improved loan loss ratio.
Nedbank’s revenues were £755 million in 2011 up from £601 million in the prior year. Old Mutual’s Long Term Savings division delivered £793 million, marginally up from £787 in 2010, driven by growth in its Emerging Markets portfolio , whilst their short-term insurer,
Mutual and Federal’s profits at £89 million were lower than the £103 million achieved in 2010, reflecting a normalized claims experience.
Its US Asset Management Business also recorded a profit decline to £67 million from £72 million attained in the prior year despite recorded improvements in the investment performance of affiliates, particularly in the International Equity and Global Fixed Income Funds. For the year ended 31 December 2011, 62% of assets under management outperformed set benchmarks compared to 57% at December 2010.
“This has been a year of strategic and operational delivery’’, Roberts said. ‘’ ..We have produced strong financial results and have taken significant steps in executing our strategic plan.
Old Mutual now has a strong base from which to drive growth.’’ , he added as he alluded to the company’s exposure to fast growing emerging markets including which are expected to do well in 2012.
Earnings per share were up 13% at 15.7 pence and given the groups huge cash pile of £1,500 billion, the company declared a final dividend for 2011 of 3.5 pence per share.
The company intends to pay a special dividend of £1 billion to reward its shareholders subject to shareholder approvals for and the conclusion of the disposal of their Nordic operations. With a primary listing on the London Stock Exchange, Old Mutual is also listed on the Johannesburg Stock Exchange and on the Zimbabwe Stock Exchange where it is one or three fungible counters.