Old Mutual Records 27% Half Year Profit Growth
Old Mutual Zimbabwe has recorded a half year operating profit of $34,3 million translating to 27% growth.
This was revealed during briefing session by the company’s Group Chief Executive Officer (CEO) Mr Jonas Mushosho.
“Old Mutual Zimbabwe’s operating profit increased by 27% from $27 million to $34,3 million driven by growth in our banking and asset management profits. Cabs’ profits were driven by growth in both net interest income and net non-interest income.
“The asset management’s performance was driven by higher fees on the back of growth in funds under management. The strong growth in operating profits highlights the performance resilience of the core business operations, notwithstanding the volatility experienced in investments returns” said Mushosho
He said that the diversified financial services company’s funds under management had achieved an impressive 38% upsurge to $2,9 billion.
Funds under management for the asset management business went up by 38% from $2,1 billion in the first half of 2017 to $2,9 billion as at 30 June 2018 largely due to growth in net client cash flows (nccf) and fair value gains on listed equities. As a result of the growth in funds under management, profit before tax for the asset management business increased by 84% from $3,7 million to $6,8 million” explained Mushosho
The Old Mutual boss explained that, Cabs their banking arm recorded growth in loans which increased by 29%.
“Loans and advances grew by 29% to $765,1 million driven by growth in mortgages, salary based loans to individuals and loans to corporates. The banking business recorded a net surplus growth of 25% to $20,7 million, up from $16,6 million in the first half of 2017. This was mainly due to growth in net interest income on the back of growth in loans and advances and net non-interest income due to the continued use of card based and electronic banking paltforms as alternatives to cash” added Mushosho
Old Mutual is a pan African diversified financial services company offering investment, savings, insurance and banking solutions.
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