A statement by Mr. Johannes Gawaxab has revealed that Old Mutual Zimbabwe mobilised a total revenue of $1,4 billion for the financial year 2018. This marks a 41 percent increase from $991 million in 2017.
Old Mutual’s financial statement indicated that the group consolidated its strong asset base at $4,4 billion from $3,1 billion in the comparable period. In a statement accompanying the financial report, Gawaxab, said:
Profit before tax increased by 36 percent from $242, 9 million in 2017 to $329, 8 million in 2018 and this was mainly driven by growth in total revenue. Total revenue rose by 41 percent from $991 million to $1,4 billion on the back of growth in all main revenue lines, particularly investment gains and banking interest income.
Operating profit increased by 23 percent from $64,5 million to $79,2 million, driven by profit growth in the life, banking and asset management businesses. The strong growth in operating profit highlights the performance resilience of the core business operations.
Gawaxab attributed this performance to improved client retention and new business. He also said private motor claims stimulated the growth. Moreover, increased repair costs due to scarcity of foreign currency effected a cost increase on imported components used for repairs.
Growth in net interest income from growth in loans and advances, and an improvement in net interest margin effected banking business increase to $49,2 million up from $42,1 million in 2017.
Old Mutual completed the development of 1 082 housing stands in Bulawayo in 2018.
However, Gawaxab noted that short term insurance business insurance recorded an underwriting loss of $0,3 million attributed to growth in claims from prior year.
