Old Mutual Zimbabwe’s operating profit for the half year ended June 2018 increased by 27% from $27 million recorded during the same period last year to $34.3 million driven by growth in the banking and asset management profits.
Addressing analysts in the capital yesterday, Old Mutual Zimbabwe Chief Executive Officer, Mr Jonas Mushosho attributed the increased growth in operating profit to strong performances from the Group’s banking and asset management arms.
“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 investment returns,” said Mushosho.
He added that funds under management 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,” he explained.
“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 platforms as alternatives to cash.” added Mushosho.
