M&G saw profits rise by 28 per cent in 2023, despite £6.2bn of outflows in UK institutional asset management, which the firm said was triggered by the 2022 mini budget.
According to the firm's full year results for 2023, profit before tax was £797mn, compared with £625mn in 2022.
It achieved cost savings of £73mn in 2023 and overall, the firm saw net inflows of £1.1bn.
The £6.2bn of outflows in institutional asset management, compared with £2.3bn in 2022, with the firm saying it was down to ongoing de-risking of defined benefit pensions funds coupled with the “mini-budget crisis”.
M&G said it expects market conditions in this area to normalise in 2024.
Andrea Rossi, group CEO, said: “This financial performance underscores the importance of our balanced and diversified business model, with strong growth achieved despite continued macroeconomic uncertainty.
“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 £2.5bn by the end of the year.”
The results announced a total ordinary dividend of 19.7p per share for 2023, up just 0.1p on the previous year.
A year ago, Rossi announced the company had launched a ‘transformation’ programme targeting £200mn in cost savings by the end of 2025.
The latest results said there has been “good momentum” in the first year of this programme.
The £73mn saving comes from cost-saving initiatives, including a voluntary redundancy programme, reducing its UK office spend by 15 per cent, restructuring the private markets team; and reducing consultancy and contractor spend by 11 per cent.
In terms of its wealth business, it said it continued to develop and grow the M&G Wealth Advice Academy – with 166 trainees as at the end of 2023, compared to 53 in 2022.
It also said it had made a major update to its digital platform solution and delivered increased volumes of advice to clients.
tara.o'connor@ft.com
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