In the latest financial results released today, the Old Mutual Group revealed double-digit growth of 14% in adjusted headline earnings, while adjusted headline earnings per share increased by 17%.
This equates to the best profit produced by Old Mutual in five years with strong growth coming from their short-term insurance product sales, boosting the bottom line.
Significantly for shareholders, the 4% growth in profit to R8,7 billion was achieved despite investments in new growth engines, that included OM Bank.
Double Digit Growth on Earnings
The strong cash generation, included a R1 billion cash remittance from Old Mutual Africa Regions, which in turn delivered a 6% dividend growth, with the final dividend of 52 cents per share declared. Total dividends for 2024 amounted to 86 cents per share.
Return on net asset value increased to 12.7%, underpinned by double-digit growth in adjusted headline earnings, driven by strong profits from Old Mutual Insure, Old Mutual Wealth and Old Mutual Investments.
All customer-facing Group segments delivered operating profits in excess of R1 billion each. Return on net asset value excluding new growth initiatives improved to 15.6%, indicating the underlying profitability of existing operations before the impact of the new investments made.
Good Growth in Funds Under Management
Funds under management for the Group grew by 10% to R1.5 trillion, reflecting strong performance in equities and money market assets, predominantly in South Africa, Malawi and Kenya.
Reflecting on shareholder value creation, the Group CEO, Iain Williamson said “since the primary listing of Old Mutual on the JSE in 2018, the Group has returned a staggering R89 billion to shareholders. This included a special dividend of R4.9 billion, Nedbank unbundling of R49.5 billion, and cumulative share buybacks of R7.2 billion”.
OM Bank Approved to Trade
Referring to future growth Williamson said that “Old Mutual has continued to make substantial investments in building future capabilities of its core businesses and to fund growth businesses including completing the build of OM Bank. The launch of OM Bank in South Africa is a material catalyst in Old Mutual’s strategy and a concrete realization of the Group’s strategic ambition to build an integrated financial services business.
Williams also confirmed that Old Mutual had received confirmation from the South African Reserve Bank’s Prudential Authority that the group had fulfilled all the conditions of our license.
“This now opens officially paves the way for us to commence business and start accepting deposits from a small group of customers,” said Williamson. “We have begun a beta launch to our staff in South Africa ahead of a campaign to offer the new value proposition to our 1.1 million Money Account customers, followed by a phased launch of OM Bank to the broader public ,” said Williamson.
