Half Year 2024 M&G PLC Earnings Call Transcript
Key Points
- M&G PLC (MGPUF) achieved strong investment performance, with nearly GBP2 billion of net inflows in the first half of 2024, and over GBP700 million in July and August.
- The company has significantly reduced its debt, buying back GBP461 million and reducing ongoing interest by GBP21 million per annum.
- M&G PLC (MGPUF) has increased its cost savings target to GBP220 million, reflecting strong progress in its transformation program.
- The solvency ratio improved to 210%, indicating a strong balance sheet and financial resilience.
- The asset management division saw a 9% increase in profits, driven by higher revenues and reduced costs.
- Net client outflows of GBP1.5 billion were reported, mainly in the wealth segment.
- Operating profit was marginally down year-on-year, with a decline in PruFund and traditional with-profits earnings.
- Persistently high interest rates have been a headwind, particularly affecting PruFund sales.
- The company is exiting its digital platform and advisor platform, indicating challenges in its wealth strategy.
- The asset management cost income ratio, although improved, still stands at 77%, indicating room for further efficiency improvements.
Good morning, and welcome to M&Gâs Half-Year Results. I am very happy to be here with you today, to share the progress we have achieved so far in 2024 as we continue to deliver on our strategic priorities, and to lay the foundations for sustainable business growth.
Over the last six months, we have taken meaningful steps forward, both from an operational perspective and towards all our financial targets. Despite the high-rate environment, which subdued new business sales, we delivered a good performance, with both operating profit and capital generation nearly matching last yearâs record result.
And thanks to our strong investment performance, we achieved some of the best flows among active Asset Managers. With market trends improving, we are well placed to capitalise on growth opportunities. Let me now take you through the key business highlights.
We began our strategic journey 18 months ago when I outlined my three priorities for M&G financial strength, simplification and growth we continue
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
