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Old Mutual Zimbabwe swings back to profit

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BUSINESS REPORTER

 

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Zimbabwe’s largest financial services group, Old Mutual Zimbabwe is back in the black after posting a  ZWL$517bn  profit in the 12 months to December 31, 2023, from a loss of ZWL$151bn reported in the previous year, largely attributable to above inflation returns on invested assets.

Revenue for the group grew to ZWL$1.33 trillion in the period under review from ZWL$664.40bn reported in 2022.

Interest income grew 218% to ZWL$146 bn, driven by growth in loans and advances, despite tightening lending margins as the profile of the loan book became skewed to United States dollar loans.

Fee and commission income for the group increased to ZWL$209 bn, an increase of 833% driven by higher nominal values of transactions in response to inflation.

Total assets increased by 98% from ZWL$4.8 trillion in the prior year to ZWL$9.6 trillion as at 31 December 2023.”

Investment returns were ZWL$5,1 trillion, up from ZWL$423 bn achieved in the prior year.

“This was largely due to the performance of ZSE [Zimbabwe Stock Exchange]-listed equities, translation gains of investments denominated in foreign currencies and gains on investment property,” Group CEO, Samuel Matsekete said.

He added: “We will continue to invest in technology and process improvement efforts, while focusing on growing our customer base for both retail and corporate segments, supported by our integrated omni-channel configuration,” Matsekete projected the outlook for 2024.

To support growth of lending and transactional banking offering, the group will continue to engage regional and international lenders and correspondent banks to maintain and access new facilities.

 

 

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