Old Mutual Reports 14% earnings growth in strong 2024 annual results
Old Mutual demonstrates financial resilience with 17% increase in headline earnings per share, 6% dividend growth, and strategic advances in banking and digital transformation, positioning for sustainable growth in 2025
Financial highlights show strong performance across key metrics
Old Mutual's annual results for the year ended December 31, 2024, demonstrate exceptional financial resilience and strategic progress. The financial services giant reported a 14% increase in adjusted headline earnings, with adjusted headline earnings per share rising by an impressive 17%.
Key financial performance indicators:
- Results from operations: Grew by 4% (7% increase per share)
- Core business performance: 10% rise excluding new growth initiatives
- Cash generation: R10.5 billion remitted from subsidiaries
- Dividend: Final dividend of 52 cents per share (86 cents total for 2024, up 6%)
This growth showcases robust performance across various business segments, primarily driven by increased shareholder investment returns and favourable economic conditions throughout the year.
Strategic developments and digital transformation
Old Mutual made significant strategic advancements in 2024, preparing the company for future growth opportunities:
OM bank launch
Old Mutual received regulatory approval for OM Bank, with plans for a full rollout by Q4 2025. While initial losses between R1.1 billion and R1.3 billion are anticipated, this investment represents a strategic expansion into the banking sector.
Digital innovation achievements
The company accelerated its digital transformation through several initiatives:
- Decommissioned 21 legacy systems
- Increased active digital users by 22%
- Launched an innovative digital two-pot retirement solution
These digital advancements aim to enhance customer experience while improving operational efficiency across all business segments.
Sustainability focus
Old Mutual strengthened its commitment to sustainability through:
- Responsible investment practices
- Climate action initiatives
- Financial wellness programs
- Strategic investments in the green economy
Market Conditions and Regional Performance
South African Market
The South African economy showed signs of recovery, though challenges persist:
- High household debt levels
- Elevated interest rates
- Pressure on consumer spending
Pan-African Operations
While some African countries experienced inflationary pressures, earnings contributions from these regions remained positive, demonstrating the resilience of Old Mutual's diversified operations across the continent.
2025 Outlook and Strategic Priorities
Looking ahead, Old Mutual anticipates modest economic growth in South Africa, though high debt levels and interest rates will continue to pose challenges. The company has outlined key strategic priorities for 2025:
- Continued investment in digital capabilities
- Expansion of OM Bank operations
- Advancement of sustainability initiatives
- Enhancement of customer engagement strategies
Old Mutual's strong performance in 2024, characterised by financial resilience and strategic innovation, positions the company well to navigate future challenges and capitalise on emerging opportunities in the financial services sector.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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