Old Mutual Limited is on the brink of releasing its financial results for the year ended 31 December 2023. As investors eagerly await this announcement, let’s delve into what to expect from Old Mutual’s performance.
Overview of Old Mutual Limited
Old Mutual is deeply rooted in the African financial landscape, offering a wide array of financial solutions across 14 countries. With over 178 years of heritage, it serves both retail and corporate customers, emphasizing its crucial role in African society.
Financial Performance Highlights
Robust Results from Operations
Old Mutual has recorded significant growth in Results from Operations (RFO), driven by strong operational performance and exceptional growth in new business across various segments. The RFO is expected to increase by 6% to 26% compared to the previous year.
Adjusted Headline Earnings Growth
Adjusted headline earnings (AHE) are anticipated to show substantial growth, ranging from 13% to 33%. This growth is bolstered by increased shareholder investment returns, thanks to higher interest rates and a recovery in equity markets.
Exclusion of Zimbabwe Profits
Notably, Old Mutual has excluded profits from its Zimbabwe operations from AHE due to the country’s hyperinflationary economy, which leads to earnings volatility. However, higher shareholder portfolio profits in the Zimbabwean business have contributed to the growth in headline earnings relative to AHE.
Key Profit Measures Table
| Key Profit Measures | Estimated % Change | Estimated 31 Dec 2023 | IFRS17 Unaudited Results for the Year Ended 31 Dec 2022 |
|---|---|---|---|
| RFO | 6% to 26% | R7,749 to R9,211 | R7,310 |
| AHE | 13% to 33% | R5,481 to R6,451 | R4,850 |
| AHEPS (cents) | 14% to 34% | 121.3 to 142.6 | 106.4 |
| Headline Earnings | 16% to 36% | R6,792 to R7,963 | R5,855 |
| HEPS (cents) | 18% to 38% | 152.5 to 178.3 | 129.2 |
| IFRS Profit after Tax | 25% to 45% | R6,540 to R7,586 | R5,232 |
| Basic EPS (cents) | 27% to 47% | 146.7 to 169.8 | 115.5 |
Comparative Analysis
The financial results for the current period are prepared on an IFRS 17 basis, whereas the results for the comparative period were prepared on an IFRS 4 basis. However, it’s not expected that there will be a significant difference in results when compared to the previously disclosed comparative period results under IFRS 4.
Conclusion
Old Mutual Limited’s upcoming financial release for the year ended 31 December 2023 promises to showcase robust growth in various key profit measures. With strong operational performance and strategic investment decisions, Old Mutual continues to solidify its position as a leading financial services provider in Africa.
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