Discovery reports 7% increase in FY HEPS

Discovery, a leading South African financial services company, has reported a 7% increase in full-year headline earnings per share (HEPS). CEO Adrian Gore sat down with CNBC Africa to discuss the company's exceptional performance and growth prospects across its key business areas. Gore highlighted the success of Discovery Bank and the expansion of their operations in China as significant drivers of the company's growth trajectory. Gore emphasized that the recent reporting period marked a positive phase for Discovery, following considerable investments in initiatives such as Discovery Bank. He noted that the company had moved past the intensive investment phase, leading to a significant decrease in capital requirements going forward. The performance of core businesses, coupled with the successful implementation of strategic initiatives, has positioned Discovery for strong growth potential. One of the key highlights of the discussion was the outstanding performance of Discovery Bank. Gore revealed that the company had invested approximately $13 billion in building the bank over the past seven to eight years, with minimal capital injections expected in the future. The bank has surpassed expectations, with over a million clients and strong growth projections. Gore expressed confidence in the bank's profitability and quality of service, underscoring its significant contribution to the company's overall performance. In addition to the success of Discovery Bank, Gore shed light on the company's operations in China, particularly in the health insurance sector. With a focus on delivering high-quality services and achieving robust financial performance, Discovery's presence in China has witnessed substantial growth. The company's health insurance arm covers a vast population and has demonstrated sound financial metrics, driving strong profits and cash generation. Looking ahead, Gore discussed the evolving business environment in South Africa and the positive outlook for the country's economic prospects. He highlighted the collaborative efforts between the private sector and the government in addressing key challenges and driving growth initiatives. Gore emphasized the importance of fostering a conducive business environment to promote economic growth and job creation. The discussion also touched upon the critical issue of healthcare reform in South Africa, particularly the National Health Insurance (NHI) Act. Gore acknowledged past concerns regarding private sector engagement but expressed optimism about the current dialogue with the government. He emphasized the need for constructive engagement and collaborative solutions to ensure the success of healthcare reform for the benefit of all South Africans. In conclusion, Adrian Gore's insightful remarks highlighted Discovery's strong performance and strategic focus on key growth areas. With a positive outlook for the future, Discovery continues to position itself as a leader in the financial services industry, driven by innovation, quality service, and sustainable growth.