Old Mutual earnings spike as firm gears up to find a new boss
Pan-African financial services group Old Mutual recorded headline earnings growth of 20 per cent last year as the firm gears up to find a new CEO.
The London-listed group reported 14 per cent growth in adjusted headline earnings, while profit after tax climbed nine per cent in its full-year results.
However, the financial services group’s stock price has fallen nine per cent since the start of 2025 and more than two-thirds since it was demerged and listed as Old Mutual in 2018.
Last month, chief Iain Williamson announced he would be taking an early retirement from 31 August, with a search for a new CEO still ongoing.
Williamson worked at the firm for 32 years after being appointed as CEO in July 2020.
Old Mutual’s results
The firm’s increasing focus on digital and technology transformation led it to decommission 21 legacy systems and increase digital users by 22 per cent throughout the year.
“Our digital two-pot retirement solution in South Africa was a key delivery in 2024, enabling us to process over 275 000 claims, 99 per cent of which were submitted via Whatsapp,” noted Williamson.
With the firm’s African focus, much of its growth plan is dependent on the state of the economies it serves.
“In South Africa, the formation of the Government of National Unity, coupled with early momentum in the macroeconomic environment and improved load shedding boosted investor confidence,” reported Williamson.
Last year, the country’s government saw the ruling African National Congress enter into a coalition with the free-market supporting Democratic Alliance.
Benign inflation, solid equity market growth and a rising South African rand also helped with hopes of an economic recovery in the second half of the year.
However, a high interest rate environment in the country, coupled with sagging consumer confidence, still poses problems for the firm’s retail business.
Inflationary pressures have also continued to impact several of Old Mutual’s other target countries, with Malawi particularly impacted.