Old Mutual Group East Africa Holdings Limited has recorded a KSh 200 million pre-tax profit for the half-year period ended June 2023.
These results were primarily driven by a profitable growth in revenues, which increased by KSh 1.8 billion coupled with increased investment income from financial assets and investment properties.
However, the Group did face the challenge of a substantial rise in finance costs on borrowings which were up 96% due to increased interest rates and forex losses on the portion of the US dollar-denominated debt as a result of a weakening Kenya Shilling.
The Group’s operating profits before finance costs increased to KSh 2.1 billion, compared to KSh 0.1 billion in 2022.
The Group comprises former UAP Holdings PLC) and its subsidiaries; which deal with General Insurance and Life Assurance business as well as Old Mutual East Africa Holdings Group Limited (formerly Old Mutual Holdings Limited) and its subsidiaries; Old Mutual Life Assurance Company Limited (operating as a closed fund), Old Mutual Investment Group and Faulu Microfinance Bank.
The Group operates an integrated financial services business model and is one of the largest in East Africa, offering insurance, investment, banking, and savings solutions. Old Mutual East Africa Group rebranded from UAP Old Mutual Group on the 17th of May 2022.
The Group is part of Old Mutual Limited (OML), a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key markets in 14 countries.
As part of OML, the Group is able to leverage technology and technical expertise to better serve customers as well as offer broad career growth prospects for employees. The Group operates in Kenya, Uganda, South Sudan, Rwanda, and Tanzania.
“Our strategy is focused on delivering our integrated financial services offering to meet all our customer’s financial needs under one roof,” Old Mutual Group EA Chief Executive Officer Arthur Oginga said.
“This will enhance our customer experience and improve productivity on our distribution channels in our various markets,” Oginga added.
The libor, the tool used to determine interest on US Dollar loans, moved from 0.59% in June 2022 to a high of 5% in June 2023, while the Kenya Shilling depreciated by 14% against the greenback over the same period.
Operating profits before finance costs will be KSh2.1 billion in 2023, compared to KSh100 million in 2022.
The Group maintains a positive forecast about the region’s economic health but warns that potential risks from rising global oil prices and the adverse effects of the El Nino weather phenomenon, remain a poser.
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