Old Mutual Zimbabwe has secured an operating licence for its microfinance institution from the Reserve Bank of Zimbabwe.The microfinance institution is expected to open its doors to the market in April this year.
Old Mutual group chief executive Jonas Mushosho told analysts yesterday that the foray into the microfinance space was part of the group’s efforts to advance financial inclusion.
“The microfinance unit has been established, and we have received a licence from the RBZ and in April this year, the institution will open its doors to the market and will make funding more affordable,” said Mr Mushosho.
On financials, the group’s after tax profit for the year to December 31, 2016 increased to $91,8 million driven mainly by an increase in investment income from non-banking.
Total revenue increased 126 percent to $460,5 million in the full year due to an increase in investment income from non-banking and gross earned premiums.
Investment income from non-banking increased 202 percent from a loss of $126,2 million in the previous year to $128,8 million.
Mr Mushosho said the group’s adjusted operating profit for the period slightly increased at $76,1 million.
Other operations and administration expenses were up 4 percent to $89,9 million while net client cash flows were down 17 percent to $81,8 million.
Funds under the group’s management rose 13 percent to $1,8 billion last year.
Non-life sales were up 23 percent to $273 million while life sales declined by 26 percent to $21,1 million in the period. Property investment dropped four percent from $408,4 million in the previous year to $392,6 million.
Interest income was lower by 7,4 percent from $100,8 million in the previous year to $93,3 million.