Old Mutual Ltd said Wednesday it expects to report a stronger profit performance for 2021, which is set to demonstrate a strong recovery from the effects of the Covid-19 pandemic.

For the year, the Cape Town-based financial services firm said it expects basic earnings per share between 148 and 160 rand cents, around 7.24 pence to 7.82p, swinging from a loss of 116.3 cents the year before.

Headline earnings per share meanwhile is set to range from 161 cents to 172 cents, a 38% to 48% rise from 116.7 cents the prior year. Headline earnings is expected to range from R 7.07 billion from R 7.58 billion, a 39% to 49% increase from R 5.09 billion.

Old Mutual said the relaxing of lockdown restrictions supported growth in productivity across its business, with South African retail segments including Personal Finance and Wealth Management seeing a pick up in issued sales.

Old Mutual also noted a stronger performance in the South African equities market, with the JSE Shareholder Weighted All Share index up 17% for 2021, positively affecting the group’s asset base and associated fee income.

Meanwhile, in the Rest of Africa, the group experienced a return to normal economic activity.

Old Mutual will publish its annual results on March 15.

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