Old Mutual Ltd reported on Tuesday it expects its earnings for the first half of 2024 to achieve double-digit growth on the back of strong operational performance.

The Anglo-South African financial services firm estimated earnings per share at between 115.1 rand cents and 124.7 cents for the first six months that ended June 30, up between 19% and 29% from 96.7 cents a year earlier.

Headline EPS is guided to a range of between 128.7 cents and 138.4 cents from 96.8 cents, representing an increase of between 33% and 43%.

Old Mutual said strong operational performance in Old Mutual Insure, Old Mutual Corporate and Mass and Foundation Cluster was offset by lower life profits in Personal Finance, primarily driven by an increased number of large claims, and higher central costs.

The movement between IFRS profit and headline was primarily driven by the loss recognised on the disposal of Old Mutual’s Nigeria business. IFRS profit is expected within R 5.00 billion to R 5.44 billion rand, compared to R 4.35 billion.

Old Mutual said its adjusted headline earnings growth was bolstered by increased shareholder investment returns as a result of improved performance in South African equities.

Adjusted headline earnings exclude the Zimbabwe profits as the economy is hyperinflationary and there are barriers to accessing capital by way of dividends.

Shares in Old Mutual were up 1.0% to R 12.95 on Tuesday afternoon in Johannesburg, and rose 0.9% to 55.00 pence in London.

Copyright 2024 Alliance News Ltd. All Rights Reserved.