Old Mutual reports 17% growth in FY adjusted HEPS

Old Mutual, a leading financial services company, has recently gained regulatory approval to launch its bank, showcasing its commitment to growth and innovation. The group reported a significant rise in full-year adjusted headline earnings, demonstrating resilience in a challenging economic environment. Old Mutual CEO, Iain Williamson, highlighted the impact of the Government of National Unity and positive market sentiment on the company's performance. Despite tough consumer conditions, including high debt levels, the company remains optimistic about the future. Williamson discussed the behavior of consumers and clients, noting constrained top-line growth in certain sectors. He emphasized the importance of credit loss ratios and persistency rates in understanding consumer financial health. While challenges persist, Williamson anticipates improvements as interest rate cuts and wage settlements take effect. The company is focused on affordability checks and operational efficiency to support clients during difficult periods. Regarding credit lending criteria, Williamson indicated a positive trend in default rates and collection rates, allowing for a more expansionary approach in the future. Additionally, he addressed the impact of recent withdrawal activity, noting a decrease in liquidity demands but significant payouts to customers. Despite challenges in the wealth management business due to cost pressures, Old Mutual has seen growth in client numbers and assets under management. Excitement surrounds the launch of Old Mutual Bank, with Williamson highlighting the seamless account opening process and the initial value proposition for clients. The company plans to gradually roll out the bank's services to staff and existing customers before opening to the public later this year. Williamson expressed confidence in the bank's risk-based approach to ensure a smooth customer experience. As Williamson prepares for early retirement, the board is actively seeking his successor, with internal candidates already in the running. The CEO's transition marks a significant moment for Old Mutual, but the company remains focused on driving growth and delivering valuable financial services to its customers. Overall, Old Mutual's performance reflects a balance of resilience, innovation, and strategic planning in navigating challenging economic conditions.