Old Mutual declares dividend

By Paul Nyakazeya

Old Mutual Zimbabwe has declared a 3,76 cents per share at a time many companies are failing to reward their investors.

Nqobile Munzara, the listed life assurer’s company secretary said the payment would be made on or about Tuesday, October 16, 2018.

“Notice is hereby given that on Thursday, September 27, 2018, the board of directors of Old Mutual Zimbabwe declared a dividend of 3,76 United States cents per share,” she said.

Many companies that announced financial results for the half year to June 2018 did not declare dividends citing the need to preserve cash in an environment characterised by persistent liquidity challenges.

Munzara noted that the last date to trade cum dividend was October 2 while ex-dividend dates was on October 3.

Last month, Old Mutual Zimbabwe said its profit after tax declined by 35 percent to $66 million for the half year to June 30, 2018 from $101,8 million achieved during the same period prior year due to the impact of lower fair value gains on listed equities during the period under review.

The impact was particularly on the insurance businesses and the holding company.

Operating profit, however, increased by 27 percent from $27 million to $34,4 million driven by growth in banking and asset management profits.

Old Mutual chairperson Johannes Gawaxab said banking profit was driven by growth in both net interest income and net non-interest income while asset management was driven by higher fees on the back of growth in loans and advances.

“Net non-interest income grew by 32 percent to $19,8 million due to continued use of card-based and electronic banking platforms as alternatives to cash,” he said.

During the period under review the group said its primary focus was on building digital capabilities in order to enhance service delivery, improving operational efficiencies and exploring opportunities for growth.

The banking and lending business recorded a net surplus growth of 25 percent to $20,7 million up from $16,6 million last year.

This was mainly due to growth in net interest income by 20 percent on the back of growth in loans and advances. Net non-interest income grew by 32 percent to $19,8 million due to continued use of card-based and electronic banking platforms as alternatives to cash.

Gross written premiums grew by eight percent from $95,3 million to $103 million in total for the life and short term insurance business due to a combination of improved client retention and new business that was underwritten. — Financial Gazette