Old Mutual suffers sterling impact

Financial services firm Old Mutual bore the brunt of sterling’s strength today as it revealed a 12% drop in half-year operating profits to £782m (€1.1bn).

The group, which acquired Swedish savings firm Skandia last year, said it achieved strong sales and positive client cash flows in most of its businesses.

But earnings were muted by the strength of sterling against the rand in South Africa, where it does much of its business, and against the US dollar.

Chief executive Jim Sutcliffe said the company’s strong capital position and “powerful” set of international businesses meant it remained in a position to grow, even if economic conditions continue to be turbulent.