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Business Writer
A strong performance on the Zimbabwe Stock Exchange saw Old Mutual Zimbabwe report significant growth in revenue for the half year ended June 30, 2017. The insurance and investment giant recorded a 175 percent gain in total revenue to $384,9 million from $139,8 million prior year comparative.
Speaking at an analysts briefing on Wednesday, Old Mutual CEO Jonas Mushosho said investment income (non-banking) contributed the bulk of the income amounting to $216,4 million after recording a 987 percent growth from a loss of $24,4 million for the comparative prior year.
The balance of the income came from banking interest and similar income with a $46,5 million contribution up 4 percent from prior year comparative. Fee income, commissions and other income contributed $30,9 million having grown by 12 percent from $27,7 million recorded prior year.
Mr Mushosho said the asset management business experienced higher fee income in the period under review than in the prior year due to recovery of the stock market.
As at August 10, 2017 the Zimbabwe Stock Exchange’s main Industrials Index was up 45.49 percent since the beginning of the year.
The strong performance on the ZSE saw the Group’s investment income grow by 987 percent to $216,4m.
“In addition, capital charges of funds administered, increased on the back of a higher asset base following the performance of the ZSE,” said Mushosho.
The Group’s funds under management grew by 31 percent to $2.1b.
Adjusted operating profit (AOP), which highlights the performance of the core business operations, amounted to $36,8 million, an 11 percent growth on 2016.
Mr Mushosho said profitability was buoyed by life assurance and asset management profits.
Online Reporter