- Significant cost savings
- Solvency II ratio on the rise
Quilter (QLT) wasn’t exactly an outlier on the wealth management front in 2023, but a 7 per cent increase in assets under management (AuM) to £107bn is at odds with the experience of some industry peers. The outcome reflects improved support from capital markets towards the year-end, combined with a positive, albeit modest, contribution from net flows – equivalent to 1 per cent of opening AuM.
Total net revenue increased by 3 per cent to £625mn, helped along by interest from corporate cash balances – interest rate hikes have had some positive impacts across the industry. An otherwise straitened environment meant that management has focused on paring back costs. And it has been successful in this regard despite persistent inflation. Consequently, the operating margin increased by five percentage points to 27 per cent, a reflection of cost savings under the group’s phase one simplification plan. That amounted to £45mn last year and management is targeting an additional £50mn under phase two by the end of 2025.