(Bloomberg) -- M&G Plc boosted its capital generation and cost savings targets as net outflows in the first half of the year were offset by buoyant markets.
The firm said it was now targeting operating capital generation of £2.7 billion ($3.5 billion) by the end of 2024, an increase of £200 million from its March guidance, M&G said in a statement Wednesday. It is also now earmarking cost savings of £220 million by the end of next year, up 10%.
Chief Executive Officer Andrea Rossi and Chief Financial Officer Kathryn McLeland said on a call with Bloomberg News that the extra cost savings will be group wide, including through automating processes, reducing reliance on external third parties and some headcount reduction.
Clients withdrew £1.5 billion ($2 billion) in the six months through June, M&G said. Analysts had estimated higher group-level outflows of £2.8 billion. The outflows came from across the business, including UK institutional asset management and the firm’s wealth division.
“Positive markets” helped assets under management and administration rise slightly to £346.1 billion, up from £343.5 billion at the end of last year, M&G said. Its shares were down 0.7% at 8:11 a.m. in London.
M&G spun out of Prudential Plc in 2019 and has been trying to grow via acquisitions and by expanding into areas such as wealth, digital advice and private markets, where it has been making a bigger push in Europe to attract more institutional investors.