HARARE – Old Mutual Limited, a major African financial services group listed on different bourses including the Zimbabwe Stock Exchange, has disclosed significant challenges in its Zimbabwean operations, which have contributed to a decline in the company’s overall IFRS profit and headline earnings for the six months ended June 30, 2025.
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IFRS profit is a company’s net income calculated in accordance with the International Financial Reporting Standards (IFRS).
The transition of Zimbabwe’s functional currency from the Zimbabwe Gold to the United States dollar has led to reduced profits in the region, impacting the group’s financial results despite strong performance elsewhere.
According to the group’s nine-month interim report released on September 10, 2025, the adverse effects from Zimbabwe were somewhat mitigated by lower currency translation losses reported in equity.
“IFRS profit and headline earnings declined, mainly reflecting reduced profits from the Zimbabwean business after the transition of its functional currency from Zimbabwe Gold to the United States dollar.
“The impact on net asset value was limited owing to lower currency translation losses reported in equity,” the company stated.
These challenges, however, contributed to the group’s headline earnings per share falling by 27% to 97.5 cents, and IFRS profit after tax attributable to equity holders dropping 22% to R4.1 billion compared to the same period last year.
Despite the setback in Zimbabwe, Old Mutual showcased strong adjusted headline earnings growth of 29% to R4.2 billion, underpinned by solid underwriting performance in Old Mutual Insure and favorable equity market conditions, particularly in South Africa and Malawi.Sep 11, 2024.
The group also successfully increased gross written premiums by 5% and experienced an 88% increase in shareholder investment returns, with the JSE All-Share Index returning 16.7% in the first half of the year.
Furthermore, the company declared an interim dividend of 37 cents per share, reflecting a 9% increase, supported by robust cash generation and a strong capital position.
Old Mutual’s discretionary capital balance rose to R5.9 billion, and the board approved a share buyback program of up to R3 billion to enhance shareholder value.
The group said its strategic focus remained on driving the competitiveness of its South African business, deepening market leadership in Southern Africa, establishing a winning proposition for OM Bank, and evaluating growth markets amid geopolitical and economic uncertainties.
Old Mutual’s overall group equity value per share declined by 6% to R18.40, influenced by business impacts including the changes in currency accounting in Zimbabwe and methodology adjustments affecting embedded value and new business margins.
The company said its outlook remained cautiously optimistic, with management emphasising focused execution, operational efficiency improvements, and disciplined capital allocation to sustain growth and create long-term value for shareholders.
“Strategic priorities have been sharpened with an emphasis on focused execution, optimising operational efficiencies and disciplined capital allocation.
“Through improved competitive positioning, the Group will be well positioned to lift growth and market share going forward.
“In order to restore our value of new business margin to an acceptable level, we have a strong resolve to drive expense efficiencies, supported by the operating model redesign and leaner corporate centre.
“With strengthened strategic clarity, disciplined execution and a strong balance sheet, we are well positioned to create long-term value for shareholders,” the group noted.
