By Anthony O. Goriainoff
Old Mutual, the pan-African financial-services group, announced that its adjusted headline earnings for the first half have increased. This growth can be attributed to a 14% rise in sales, driven by improved productivity levels. However, the company also highlighted that customer disposable income has remained under pressure, leading to a rise in disinvestments on savings and investments.
Old Mutual noted that the slow post-pandemic economic recovery, high inflation, and borrowing costs have further worsened the pressure on customer’s income in its Africa regions.
In terms of financial results, Old Mutual reported headline earnings of 4.36 billion South African rand ($228.6 million) for the first half, compared to ZAR4.75 billion in the previous year. Additionally, adjusted headline earnings rose to ZAR3.16 billion from ZAR2.58 billion.
Results from operations amounted to ZAR4.37 billion, while guidance was provided within the ZAR3.94 billion-ZAR4.79 billion range.
Although basic earnings per share fell 9% to 96.7 rand cents, Old Mutual expressed confidence that their healthy pipeline will support improvements in net client cash flow.
The board has declared an interim dividend of 32 rand cents per share, representing an increase from 25 rand cents in the previous year.