Old Mutual posts $33,1m profit

via Old Mutual posts $33,1m profit – NewsDay Zimbabwe August 7, 2015

Old Mutual Zimbabwe Limited has posted an adjusted operating profit of $33,1 million in the half year ended June 30 which is 2% from the same period last year driven by a strong performance of the banking and insurance units.

BY TATIRA ZWINOIRA

Speaking at an analyst briefing in Harare yesterday, Old Mutual group chief executive officer Jonas Mushosho said the uptick in profits was mainly due to the performance of its banking and insurance businesses that contributed 32% and 43% respectively to the group’s total revenue.

“Our revenue grew by 4% which is $126 million and it’s a very good performance when you take into account the environment. This was largely driven by the performance of our insurance and banking business,” Mushosho said.

“The group businesses themselves are well capitalised which is very important in this environment where you are taking in a lot of risk. It is important that you should have a strong capital base, so we are confident that we have a good footing to enable us to go into the future.”

The growth in Old Mutual’s life insurance was attributed to higher premium incomes which came in at $73,1 million up by 3% from the previous time frame last year, and the net client cash flow was up to $27,2 million by 13% from the same time frame in 2014.

The increase was due to good retention strategy and an increased distribution network.

The banking business was spurred on by increased lending and advances as well as higher deposits.

Loans and advances were 41% up from last year to $495,5 million. Deposits were up 36% to $719,6 million.

Mushosho said the growth in the loan book was due to an increase in demand for loans and availability of funds for lending while deposits increased due to the acquisition of new clients.

“We have also taken a very conservative view given the environment in which we are and we have increased the level of provision that we are making in our banking business,” Mushosho said.

He said the group’s strength included strong governance and risk management, operational efficiency, wide integrated distribution network and commitment to creating shareholder and client value.

“We have maintained a very attractive dividend policy which is in line with the Old Mutual PLC policy. We remain very committed to executing our strategy and strategy initiatives,” Mushosho said.

Operating expenses grew to $56,4 million from $45,8 million which Mushosho said was due to strengthening of the capital base of the life insurance and banking units.

He said Old Mutual’s plan for the second half of the year was to focus on defending and extending their core business, capitalising on group synergies, encouraging growth in response to the changing environment and seeking emerging opportunities.

COMMENTS

WORDPRESS: 2
  • comment-avatar
    thomas armstrong 7 years ago

    the Old Mutual took all our pension instalments from the 60s and put up buildings and now they cannot pay the pensioners any sort of pension NSSA came on stream many years later and they pay every month their instalment was very little. So how come Old Mutual don’t pay they are down right thieves so don’t expect a pension pay-out from them when you retire.

  • comment-avatar
    Angela Wigmore 7 years ago

    Absolute thieves! Over a 14-year period, between 1988-2003,I paid them over Z$300,000 (when the Z$ was worth equivalent to about £) but when I had to leave Zim in 2003 they would not accept a full payment of the remaining one year of my 15-year contract, which I could have paid, saying it had to be paid monthly and not in one payment. I had no-one I could entrust this undertaking so lost not only my pension but also the money I had paid to Old Mutual over all those years. Had I only known their underhand tactics I could have saved this real money and maybe have avoided having to leave my homeland. Is there anyone who would join me in a petition against Old Mutual, in view of unfair/corrupt practice