Old Mutual Zimbabwe reports 139% growth in PAT

Harare – Zimbabwe’s biggest financial services group, Old Mutual Zimbabwe, reported a strong set of results for the year ended December 31 2017 that showed significant growth across the board.

The financial behemoth said on Friday that its total revenue went up by 7% to $351.1m with gross premiums increasing by 5% to $194.8m from $185.4m in total for the life and short term insurance businesses. Management said the growth in premiums was due to a combination of improved client retention and new businesses underwritten.

The banking business recorded a net surplus growth of 7% to $42.1m up from $39.2m in 2016. Operating and administration expenses increased at a lower rate of 5% to $93.8m from $89.4m in 2016.

Group chief executive officer Jonas Mushosho told an analysts’ briefing that the relatively low increase in costs underscores the success of cost containment measures implemented in 2017.

Speaking at the same briefing held in Harare, group chief finance officer Takura Mudekunye said adjusted operating profit had grown by 25% to $95.5m in the period under review. He said profit after tax increased by 139% to $219.3m from $91.8m largely driven by a strong operating profit across the business as well as non-banking investment returns.

Management proposed a special dividend of $10m on top of a normal dividend of $10m.

The group’s total asset base also increased by 45% to $3.1bn from $2.2bn, driven by growth in investment and securities, loans and advances, and cash and cash equivalents.

Funds under management for the asset management business grew by 50% from $1.8bn to $2.7bn.

Looking ahead, management said focus will be on exploiting new opportunities for growth, financial inclusion, operational efficiencies as well as building digital capabilities.