Old Mutual H1 net profit up 30pct

Old Mutual H1 net profit up 30pct

HARARE, August 6 (The Source) – Integrated financial services group Old Mutual Zimbabwe recorded a 30 percent increase in after tax profit to $13,1 million in the first half of the year to June, driven by a strong performance of its insurance and banking units.

Presenting the company’s half year results, group chief executive Jonas Mashosho on Thursday said the group’s total revenue had grown four percent to $126,2 million during the period under review.

Life insurance contributed 43 percent to total revenue as life sales shot up 94 percent to $14,6 million.

The banking unit — Central African Building Society (CABS) — contributed 32 percent to the group’s total revenue from 22 percent last year.

Banking interest and similar income was up 43 percent to $50,9 million driven by a 41 percent growth in the loan book with loans and advances amounting to $495,5 million.

“Our revenue lines grew significantly above last year but the only thing that dragged our performance were investment returns. Almost half of our business has assets invested in properties and on the equities market so we saw a significant drop in revenue in that space,” said acting financial director Loveness Ganda.

The group had a negative return on investments of $32,7 million compared to $17 million last year. Total expenses were up by 23 percent to $111,5 million.

Earnings per share (EPS) up to 9,96cents from 9,75 cents.