Momentum Group surpasses R7bn earnings target a year ahead of schedule - IOL
Momentum Group has reported a 13% increase in normalised headline earnings to R7.06 billion for the year to June, taking the financial services group past its R7 billion earnings target a year earlier than planned.
The group released its results on Thursday, saying the strong performance was supported by improved operational performance across most of its businesses.
Momentum Group CEO Jeanette Marais said she was proud that the group had exceeded its R7 billion earnings ambition ahead of schedule, adding that the improved results reflected stronger underlying operational performance.
“It’s also very positive that we’ve seen stronger operational performance across most business units, while market impacts played less of a role in the current year’s profitability," Marais said.
"This indicates that the actual quality of earnings improved. It’s worth noting that not only is every single business profitable, but also that five of our businesses each delivered earnings of more than R1 billion for the year."
Two of the five businesses, Momentum Retail and Momentum Corporate, had already been generating more than R1 billion in annual earnings.
Metropolitan Life, Momentum Investments and Guardrisk crossed the R1 billion mark during the year, helped by improved performance and the execution of their turnaround and growth plans.
The group also reported a turnaround in its India health insurance business, which moved from a R67 million loss to a R22 million profit.Momentum Group’s return on equity rose to 21.7%, while new business sales increased 18% to R93.8 billion.
The group declared a final dividend of 120 cents per share, taking its full-year dividend to 230 cents, up 31% from the previous year.
“Households are still absorbing high living costs, which impacts their financial decisions. Sustaining our trajectory means sharpening our focus on VNB and growing sales volumes and market share in profitable products," Marais said.
"Our Impact strategy strongly anchors our focus and execution, combining the best of technology with trusted human advice and a deep understanding of our clients’ needs. Ultimately, we never lose sight of our purpose: to build and protect our clients’ financial dreams,”
