Old Mutual has reported a strong financial performance for the year ending December 2024, alongside the announcement of its newly approved banking licence. The company’s headline earnings grew by 20% to R8.83 billion, while adjusted headline earnings, excluding its Zimbabwe operations, rose by 14% to R6.7 billion. This growth allowed Old Mutual to increase its final dividend by 6% to 52 cents per share, bringing total shareholder payouts for the year to 86 cents per share. The strong financial results were mainly driven by impressive contributions from its short-term insurance, wealth management, and investment businesses. However, its personal finance division saw a significant 26% decline in earnings due to weak sales in the mid-market segment and unusually high mortality claims earlier in the year.
The group’s newly licensed OM Bank has begun a “beta launch,” initially available to Old Mutual staff for testing. The bank will then expand its services to the company’s 1.1 million Money Account clients before gradually opening to the wider public. A full national rollout is planned for the fourth quarter of 2025. The bank is expected to operate at an annual loss of R1.1 billion to R1.3 billion in the early years before achieving breakeven by 2028. The appointment of Clarence Nethengwe as OM Bank’s CEO has also been approved, with Nomkhita Nqweni serving as chairperson. Old Mutual has invested approximately R2.8 billion in the bank’s development since 2022.
Operationally, Old Mutual Insure posted a notable profit increase, nearly quadrupling its results to R1.81 billion following a stable year with fewer extreme weather events and improved underwriting practices. Meanwhile, Old Mutual Investments achieved a 37% rise in operational results, reaching R1.68 billion. The group’s Mass and Foundation Cluster, which targets lower-income markets, posted a modest 2% growth. Old Mutual Corporate reported a 4% increase in operational results, while new growth initiatives such as OM Bank cost the group about R1.27 billion. Funds under management climbed by 10% to R1.5 trillion, driven by solid equity and money market performance in South Africa, Malawi, and Kenya.