Old Mutual in massive profit
LEADING financial services giant Old Mutual Zimbabwe posted an inflation adjusted profit of ZWL$469 billion for the year ended December 31, 2023, largely attributable to above inflation returns on invested assets.
This was compared to a loss of ZWL$154 billion for the prior year.
“The result from operations which reflects the core operating performance of the group was up 177% to ZWL$842 billion on the back of growth in revenues across all business lines,” group chief executive officer Samuel Matsekete said in a statement accompanying the financial results for the year ended December 31, 2023.
“Key topline drivers were net interest income, non-interest banking revenue, premium income and asset-based charges. Inflation adjusted total assets increased by 98% from ZWL$4,8 trillion in the prior year to ZWL$9,6 trillion as at 31 December 2023.”
Investment returns were ZWL$5,1 trillion, up from ZWL$423 billion achieved in the prior year.
“This was largely due to the performance of ZSE [Zimbabwe Stock Exchange]-listed equities, translation gains of investments denominated in foreign currencies and gains on investment property,” he said.
Interest income grew 218% to ZWL$146 billion, driven by growth in loans and advances, despite tightening lending margins as the profile of the loan book became skewed to United States dollar loans.
Fee and commission income for the group increased to ZWL$209 billion, an increase of 833% driven by higher nominal values of transactions in response to inflation.
Total assets increased by 849% to ZWL$9,4 trillion in nominal terms, driven by investment and exchange gains. Total net equity increased by 703% to ZWL$63 trillion.
“We will continue to invest in technology and process improvement efforts, while focusing on growing our customer base for both retail and corporate segments, supported by our integrated omni-channel configuration,” Matsekete projected the outlook for 2024.
To support growth of lending and transactional banking offering, the group will continue to engage regional and international lenders and correspondent banks to maintain and access new facilities.
This will be in addition to sustaining growth in core deposits.
https://www.newsday.co.zw/business/article/200025110/old-mutual-in-massive-profit