M&G profit soars, announces increased dividend

M&G profit jumps 28% thanks to cost savings, announces higher dividend. CEO upbeat on future despite economic uncertainty.

M&G profit soars, announces increased dividend

M&G (LSE: MNG) saw its annual profit surge by 28% in 2023, driven by significant cost savings that helped offset inflationary pressures. The investment manager remains confident about its future, citing a diversified business model and strong financial performance.

M&G's adjusted operating pretax profit reached £797 million, up from £625 million the year before. The company attributed this growth to a £73 million reduction in costs, which freed up resources for further development. Net client flows also saw a significant increase, rising to £1.1 billion from £200 million (excluding the Heritage division).

The company's strong performance is reflected in its increased dividend payout. Shareholders will receive a total of 19.7 pence per share, up slightly from 19.6p last year.

M&G remains optimistic despite ongoing economic uncertainty. The company believes its diversified business model, international presence, and strong product offerings position it well for the future.

M&G CEO Andrea Rossi is confident about the company's future, citing its strong financial performance and diversified business model. He believes this will allow M&G to deliver long-term value to both clients and shareholders.

Shares in M&G rose 1.1% on Thursday morning, adding to a 5% year-to-date increase.

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