26th Aug 2025 07:48
(Alliance News) - Old Mutual Ltd reported on Tuesday it expects its interim earnings to decline, but indicated that results from operations are on track to register growth.
The Anglo-South African financial services firm guided for basic earnings per share of between 84.1 rand cents and 108.2 cents for the six months that ended June 30, down between 10% and 30% from 120.2 cents a year earlier.
Headline EPS is likely to range between 84.2 cents and 110.9 cents from 133.6 cents, representing a drop of between 17% and 37%.
But adjusted HEPS is expected to rise by between 21% and 41% to 88.9 cents and 103.6 cents from 73.5 cents.
Old Mutual said adjusted headline earnings growth was further bolstered by increased shareholder investment returns as a result of improved performance in the South African and Malawian equity markets, which were "considerably" above expectations.
The company also said profits of its Zimbabwean business are excluded from adjusted headline earnings due to continued restrictions on accessing capital by way of dividends.
The weighted average number of shares reduced to 4.27 billion from 4.35 billion after share repurchase programme.
Results from operations for the first half are estimated at between ZAR4.49 billion and ZAR5.35 billion, up from ZAR4.24 billion. Results from operations is the primary measure of the operating business performance of Old Mutuals' businesses.
Growth in results from operations was primarily driven by "exceptional" growth in Old Mutual Insure and the impact of favourable financial markets, the group said.
In the first half a year before, Old Mutual included once-off adverse mortality experience in personal finance and an impairment of a secured loan in mass & foundation cluster.
By Artwell Dlamini, Alliance News senior reporter South Africa
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Old Mutual Lim.