Sanlam Limited has announced its expectations for robust growth in its financial results for the year ended 31 December 2023.
Financial Performance Overview
Sanlam anticipates positive performance across various key financial metrics, reflecting the group’s resilience and strategic initiatives amid a challenging economic environment. The following table outlines the expected earnings ranges for the year 2023, compared to the actual figures for 2022:
| Metric | Expected Range (cents per share) | Actual 2022 (cents per share) |
|---|---|---|
| Net Result from Financial Services | 545 to 592 | 474 |
| Cash NRFFS | 545 to 592 | 456 |
| Net Operational Earnings | 616 to 666 | 501 |
| Headline Earnings per Share (HEPS) | 676 to 723 | 473 |
| Diluted HEPS | 671 to 718 | 466 |
| Earnings per Share (EPS) | 670 to 730 | 598 |
| Diluted EPS | 661 to 720 | 590 |
Factors Driving Growth
Sanlam attributes its expected growth to various factors across its diverse lines of business:
- Strong risk experience in the life insurance sector.
- Higher investment market levels and overall book growth supporting asset-based revenue.
- Improved performance from the credit portfolio.
- Increased loan advances in the India operations, positively impacting earnings.
IFRS 17 Implementation
The group has applied the International Financial Reporting Standard (IFRS) 17 Insurance Contracts standard from 1 January 2023, restating 2022 numbers for comparative purposes. The restated figures align with the applicable standard and are not materially different from the previously reported IFRS 4 based numbers.
Cash NRFFS – A Better Representation
Sanlam highlights the significance of Cash NRFFS (Net Result from Financial Services adjusted for specific non-cash items) in providing a more accurate portrayal of business earnings, excluding non-cash elements such as amortisation of intangible assets and changes in insurance contract assets.
Conclusion
Sanlam’s anticipated strong growth in financial results for 2023 reflects its ongoing commitment to delivering value to shareholders and stakeholders despite prevailing economic challenges. The group’s strategic focus on operational excellence and prudent risk management continues to underpin its resilience in the dynamic financial services landscape.
