Old Mutual Ltd said on Tuesday it expects strong annual financial performance, underpinned by ‘exceptional growth’ in new business and value of new business.
The Anglo-South African financial services firm guided for a rise in earnings per share to between 146.7 rand cents and 169.8 cents in 2023 from 115.5 cents in 2022.
Headline EPS looks set to grow to between 152.5 cents and 178.3 cents from 129.2 cents.
Old Mutual described growth in results from operations as ‘robust’, driven by ‘exceptional growth’ in new business and value of new business as it continue to gain market share across its segments.
Adjusted headline earnings growth was further bolstered by increased shareholder investment returns as a result of increased interest rates and a recovery in equity markets, the company said. Adjusted headline earnings is Old Mutual’s primary profit metric.
‘We exclude the Zimbabwe profits from AHE as the economy is currently hyperinflationary resulting in earnings volatility. The main contributor to the higher level of growth in headline earnings relative to AHE is higher shareholder portfolio profits in the Zimbabwean business,’ it explained.
IFRS profit after tax attributable to equity holders of the parent is estimated at between R 6.54 billion and R 7.58 billion from R 5.23 billion.
Old Mutual expects to release its 2023 financial results on March 27.
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