22 October 2017
   
BREAKING: WHO revokes Mugabe offer
WHO: Moyo seethes as Mugabe shamed
Mugabe UN honour offensive; Irish min
Gukurahundi event: cops block Dabengwa
PRC: No contest, Mujuru our automatic boss
Mthwakazi: Zim men target our women
Biti: Govt worsening Zim high risk profile
Gweru heeds Mugabe order, clears vendors
MORE NEWS
EU to Zim: Speed up economic reforms
Zim currency crisis: When the market rules
MORE BUSINESS
Mr Ugly is back! 13 up for 2017 gong
EU Film Festival comes to Bulawayo
MORE SHOWBIZ
Huddersfield hand Man U first defeat
Premiership takes Chibuku break
MORE SPORTS
Zimbabwe is Africa’s shakedown state
Napping dictator no Mandela match
MORE OPINION
 
Sunday Roast: Brave, heroic diarrhoea!
Clerics! Please plead the cause of the poor
MORE COLUMNISTS
 
 

Old Mutual profit grows seven-fold to $89mln

13/08/2017 00:00:00
by Source.co.zw
 
 
RELATED STORIES

HARARE: Old Mutual Zimbabwe group’s after tax profit jumped seven-fold to $89,4 million in the six months to June from $12,5 million in the comparable period last year mainly due to an increase in investment income from non-banking activities, chief executive Jonas Mushosho told analysts last week.

Investment income from non-banking activities jumped to $216,4 million from a loss of $24,4 million in the same period last year, attributable to gains in the equities market.

Banking interest and similar income increased by 4 percent to $46,5 million while non-interest income grew 12 percent to $30,9 million in the same period.

However, net earned premiums dropped slightly —  by one percent  — to $91 million from $91,8 million achieved in the same period in the previous year, on decreased life insurance revenue.

Life sales declined by 5 percent to $10,4 million while non-life sales rose 3 percent to $153,5 million in the same period.

Total revenue increased by 175 percent to $384 million from $139,8 million reported in the same period last year.

Finance director, Takura Mudekunye said the group’s adjusted operating profit before tax increased by 11 percent to $36,8 million from $33,1 million in the comparable period last year, driven by life assurance and asset management profits.

The group’s funds under management increased by 31 percent to $2,1 billion in the period , attributable to a surge in equities.

“Funds under management grew by 31 percent, largely driven by the increase in equity prices and also strong net client cash flows,” Mushosho said.

The group’s loans and advances increased by 11 percent to $617,5 million.

The amount of treasury bills (TBs) that the group holds increased by 61 percent from $88,9 million in the same period  last year to $143,4 million.

Mushosho said the SME centre is now 50 percent complete and is expected to be commissioned in the first half of next year.



Advertisement

The group’s total assets increased to $2,39 billion from $2,16 billion previously, on the back of a an  increase in investments and securities.

Mushosho said the Kupinga Hydroelectric project in Chipinge, which was funded by Old Mutual, was completed during the six months under review.

Old Mutual invested $5 million in the Kupinga 1,6 MW Hydro power station  project , and is expecting a 17 percent annual return from the project. The group has a 20-year power purchasing agreement with Zimbabwe Electricity Transmission and Distribution Company (ZETDC).


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker