Old Mutual rallies as final dividend underscores bumper 2023 earnings

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Old Mutual rallies as final dividend underscores bumper 2023 earnings

Old Mutual declared a final dividend of 49 cents a share after tax profit attributable to shareholders rose 35% to R7.07 billion.

Old Mutual's share price jumped on Wednesday morning after the group declared a final dividend on the back of strong 2023 financial results that saw most of its underlying business units deliver a rise in earnings. "We’re delighted – it’s a really robust operational and financial performance," Old Mutual CEO Iain Williamson told News24."We see the topline growth that we’ve achieved, with margin expansion, as a critical proof point that the strategic choices we’ve made are right. The strategy is really built around building out our integrated financial services capability and utilising our competitive strength in distribution and digital engagement to drive that.

Old Mutual Africa Regions put in another stellar showing with a 74% spike in profits to R3.61 billion driven by its presence in non-SADC markets. The rest of Africa segment operates in 12 countries across southern, east and west Africa.A deep dive into the big business story of the week, as well as expert analysis of markets and trends.On the downside, Old Mutual Insure suffered a 32% profit slump to R331 million, while Old Mutual Investments saw profit fall 22.3% to R688 million.

"We had some credit impairments on our proprietary credit book in 2023 – that line can be a bit volatile," he said, adding:

 

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