OM Bank customers surge to near half-million as Old Mutual keeps integration on track

Old Mutual Limited says the integration of Old Mutual Finance into OM Bank remains on schedule for completion by the end of 2026, as the banking division delivered rapid customer growth and a sharp increase in retail deposits during the first quarter.

In a voluntary trading update for the period ended March 31, the Zimbabwe Stock Exchange-listed financial services group reported that OM Bank’s customer base expanded from 284,000 at the end of December 2025 to 473,000 by the end of the first quarter.

The group said the growth in deposits was driven by increased savings deposits and the migration of money accounts, with management focusing on boosting transactional activity.

“OM Bank will continue to roll out its value proposition to the market,” the company said.

Old Mutual added that the integration of Old Mutual Finance into OM Bank was progressing in line with previously communicated plans and remained subject to governance and regulatory approvals.

The group also confirmed that OM Bank is expected to launch its lending activities in the second half of the year.

Within the broader Old Mutual Banking cluster, gross loans and advances were marginally higher than the prior period. The company said Old Mutual Finance’s lending book remained broadly stable year-on-year as management took deliberate steps to manage asset quality, including reducing non-performing loans and maintaining cautious loan origination amid anticipated macroeconomic pressures.

Group-wide, Old Mutual reported strong growth in several key operating metrics during the quarter.

Life annual premium equivalent (APE) sales increased by 28% to R3.7 billion, mainly driven by a large risk deal secured in Old Mutual Corporate. Excluding the transaction, Life APE sales would have increased by 15%, reflecting broader sales momentum across most business units.

Gross flows rose 14% to R60 billion, supported by strong inflows in liability-driven investments, indexation funds and equity and multi-asset capabilities within Old Mutual Investments.

Net client cash flow improved to a negative R3.18 billion from negative R5.4 billion in the comparable period, while gross written premiums edged up 1% to R7.5 billion.

Old Mutual Insure recorded a net underwriting margin above its medium-term target range of 5% to 8%, supported by disciplined underwriting, claims-cost management and improved portfolio quality.

The group said severe flooding in parts of Limpopo and Mpumalanga during the quarter did not result in material net losses for the insurer.

Results from operations amounted to R2.5 billion, broadly in line with the prior period despite continued pressure on customers and additional investment into OM Bank.

Old Mutual also reported improved capital strength during the quarter. The regulatory solvency ratio for Old Mutual Life Assurance Company South Africa increased to 186% from 167% at the end of December 2025, remaining within the group’s target range.

The company attributed the improvement partly to market movements linked to geopolitical volatility arising from the US/Israel and Iran conflict.

Meanwhile, Old Mutual confirmed the completion of its R3 billion share repurchase programme on May 15, 2026, under which more than 214 million shares were repurchased and cancelled.

“The Share Repurchase Programme has been value accretive, as the average repurchase price is below the group equity value per share reported at 31 December 2025.

“All repurchased shares have been cancelled as issued shares and have reverted to authorised but unissued share capital and the issued share capital of the Company has reduced to 4,498,037,281,” the company stated.

Looking ahead, the group said it remained focused on four strategic priorities, including strengthening its South African operations, deepening market leadership in Southern Africa, establishing OM Bank’s competitiveness and evaluating growth opportunities in selected markets.

However, Old Mutual cautioned that inflationary pressures linked to rising fuel and food prices, together with geopolitical tensions, could weigh on consumer spending and insurance margin growth across its markets.