Old Mutual half year operating profit up 27%

Old Mutual half year operating profit up 27%
Published: 21 August 2018 (891 Views)
Old Mutual Zimbabwe's Group CEO has announced, during the company's half-year analyst briefing, an operating profit of $34.3 million representing  growth of 27% for the first half of 2018.

Speaking to analysts during the briefing session held today, Mr Jonas Mushosho, Old Mutual Zimbabwe CEO and Old Mutual Rest of Africa CEO, attributes the increased growth in operating profit to strong performances from the Group's banking and asset management arms.  

"Old Mutual Zimbabwe's operating profit increased by 27% from $27 million to $34.3 million driven by growth in our banking and asset management profits. CABS' profits were driven by growth in both net interest income and net non - interest income. The asset management's performance was driven by higher fees on the back of growth in funds under management. The strong growth in operating profits highlights the performance resilience of the core business operations, notwithstanding the volatility experienced in investment returns," said Mushosho.

During the 2018 half year briefing session, Mushosho also revealed that the diversified financial services company's funds under management had achieved an impressive 38% upsurge to $2.9 billion.

"Funds under management for the asset management business went up by 38% from $2.1 billion in the first half of 2017 to $2.9 billion as at 30 June 2018 largely due to growth in net client cash flows (NCCF) and fair value gains on listed equities. As a result of the growth in funds under management, profit before tax for the asset management business increased by 84% from $3.7 million to $6.8 million," he explained.

The Old Mutual Group CEO also explained that, CABS, their banking arm, recorded growth in loans which increased by 29%.
 
"Loans and advances grew by 29% to $765.1 million driven by growth in mortgages, salary based loans to individuals and loans to corporates.

The banking business recorded a net surplus growth of 25%, to $20.7 million, up from $16.6 million in the first half of 2017. This was mainly due to growth in net interest income on the back of growth in loans and advances and net non-interest income due to the continued use of card based and electronic banking platforms as alternatives to cash." added Mushosho.

Lower comparative gains on listed equities resulted in a Headline earnings decline of 40% from 2017 half year figure of $89 million to $53.9 million. The decline reflects a lower investment return on listed equities in the current period compared to 2017.

"The decline in Headline earnings by 40% is largely due to the impact of lower fair value gains on listed equities in the current period, particularly on the insurance businesses and the holding company.

A number of factors; including but not limited to; investors taking positions ahead of  elections and profit taking on signs of possible overheating; led to the local stock market struggling for direction during the first half of 2018. In spite of recent volatility, we believe the stock market will continue to offer a sustainable hedge against environmental risks such as inflation. Equities also provide growth prospects as the environment stabilises." clarified Mr Mushosho.

The company also took the time during the half year briefing to announce that they had repositioned their brand through a brand refresh. Old Mutual is an international pan-African diversified financial services company offering investment, savings, insurance and banking solutions.


- Agencies

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Chamisa needs to get on with the program now

by Charles Motsi | 23 September 2018 | 108 Views

The Church as seen by a Young Layman: Unmasking the darker side of modernity in Christianity

by Brian Maregedze and Tedious Ncube | 23 September 2018 | 66 Views

UNGA, an opportunity to tell the Zimbabwean story

by Tafara Shumba | 23 September 2018 | 57 Views

Zimbabweans in diaspora ready to build country

by Nobleman Runyanga | 23 September 2018 | 74 Views

Inter Africa bus in fatal head on collision

by Simbarashe Sithole | 23 September 2018 | 85 Views

Remembering Sidney Malunga

by Siphosami Malunga | 23 September 2018 | 99 Views

MDC Alliance council's grand corruption, shady deals exposed

by Staff reporter | 23 September 2018 | 105 Views

Chigumba lashes out at 'sore losers'

by Staff reporter | 23 September 2018 | 83 Views

Chiwenga launches African Dream boat

by Staff reporter | 23 September 2018 | 117 Views

Rogue cops run amok in Harare

by Staff reporter | 23 September 2018 | 116 Views

American investors express massive interest in Zimbabwe

by Staff reporter | 23 September 2018 | 93 Views

Prison boss willing to consider inmates conjugal visits

by Staff reporter | 23 September 2018 | 70 Views

Zanu-PF, Mines ministry officials grab gold mine

by Staff reporter | 23 September 2018 | 65 Views

Obert Mpofu denies growing rich off govt corruption

by Staff reporter | 23 September 2018 | 74 Views

Mnangagwa will not follow Mugabe's ways

by Staff reporter | 23 September 2018 | 75 Views

Extreme greed among MDC Alliance, Zanu-PF MPs shocking

by Staff reporter | 23 September 2018 | 70 Views

Chiwenga ordered army to be in the streets of Harare - Hwende

by Simbarashe Sithole | 23 September 2018 | 126 Views

Man bashes wife over cellphone

by Simbarashe Sithole | 23 September 2018 | 58 Views

ED set to address UNGA 2018

by Ashely Kondo | 23 September 2018 | 64 Views

Schools competition postponed due to cholera

by Stephen Jakes | 23 September 2018 | 58 Views

Mnangagwa lies about Gukurahundi commission, says Mathuthu

by Stephen Jakes | 23 September 2018 | 85 Views

Mnangagwa's message to Uncle Sam

by Staff reporter | 23 September 2018 | 75 Views

Its time to build Zimbabwe - Makamba

by Stephen Jakes | 23 September 2018 | 75 Views

Zimbabweans should brace for belt-tightening

by Staff reporter | 23 September 2018 | 69 Views

Mnangagwa needs the best brains Zimbabwe can produce

by Staff reporter | 23 September 2018 | 70 Views

Boost for Zimbabwe industry

by Staff reporter | 23 September 2018 | 60 Views

Crocodile Gang: 'Last man standing'

by Staff reporter | 23 September 2018 | 63 Views

ED explains to the world he is his own man

by Nobleman Runyanga | 23 September 2018 | 57 Views

Zanu-PF has stabilised

by Dr Obert Mpofu | 23 September 2018 | 59 Views

GMB boss arrested over $1m

by Staff reporter | 23 September 2018 | 61 Views

Govt moves into bulk fuel imports

by Staff reporter | 23 September 2018 | 46 Views

Mnangagwa's game-changing appointments

by Staff reporter | 23 September 2018 | 51 Views

New rules for Zimsec exams

by Staff reporter | 23 September 2018 | 49 Views

Zimbabwe roadblocks to continue

by Staff reporter | 23 September 2018 | 48 Views

Council bank for Bulawayo

by Staff reporter | 23 September 2018 | 48 Views

Foreign Bulawayo mayor calls on councillors and residents to unite

by Staff reporter | 23 September 2018 | 39 Views

'Production costs push price of bread up'

by Staff reporter | 23 September 2018 | 41 Views