Monetary providers group Outdated Mutual says it delivered a stable set of monetary outcomes, with growth in each gross sales and earnings within the first half of the 12 months, regardless of the robust financial circumstances.
Adjusted headline earnings per share superior 70% to 63.4 cents per share, whereas outcomes from operations (RFO) confirmed stable efficiency at R2.2 billion, rising 42% from the identical interval final 12 months.
Outdated Mutual, celebrating 176 years in existence, declared an interim dividend of 25 cents per share, according to its dividend coverage.
Outdated Mutual CEO Iain Williamson mentioned: “When I reflect on the first six months of this year, I am extremely proud of the progress that our efforts to rectify, simplify and amplify our underlying business have produced. These have enabled us to strengthen our position in the market, with continued progress towards becoming our customers’ first choice.”
The restoration in native and international fairness markets positively impacted its asset base, leading to closing Funds Beneath Administration (FUM) of R1.2 trillion, 6% up from the tip of December 2020. Larger common FUM ranges drove increased asset-based charges for the interval.
“We now have made vital progress to amplify our buyer and adviser experiences by means of digital choices. We’re on observe so as to add the financial savings and revenue propositions in South Africa and Namibia alongside the OMP vary utilising the identical core infrastructure.
“We are embarking on initiatives to support growth adjacent to our traditional channels and markets and will actively partner with international and local players to explore opportunities relating to fintech, insurtech, transactional services, and value-added services,” Williamson mentioned.
Outdated Mutual mentioned its mortality expertise has been worse than anticipated, with the impression on earnings mitigated by a partial launch of provisions raised on the finish of 2020. The Covid-19 provisions have been elevated by R2 billion as of 30 June 2021 to take note of the rising expectations of waves 3 and 4 and potential future waves.
The provisions have been up to date to take note of the extra obtainable knowledge so far and the anticipated impression of the proposed vaccination rollout plan, it mentioned.
“We now have revised our medium-term outlook based mostly on this stable efficiency and stay optimistic of our means to maintain this growth going ahead.
“We have increased our results from operations target to deliver 2019 plus 5% to 10% by the end of 2023. We strive to achieve RoNAV of between Cost of Equity +2% and Cost of Equity +4%. We expect cost savings to be delivered from our South African insurance and savings businesses, allowing us to further our investment in innovation and other initiatives,” mentioned Williamson.