Strong results expected for major South African bank
Discovery is expecting strong results for the year ended 30 June, with earnings per share growing by up to 40%.
Discovery was initially formed as a small risk insurance company by Adrian Gore and Barry Swartzberg, and has since expanded into banking, life insurance, and wellness programs.
The group started Discovery Vitality, a system for tracking and rewarding healthy habits, in 1997 to encourage its clients to live healthier lives.
Since its foundation, the company has grown into a major name in South African banking and insurance, with a market cap of approximately R176 billion.
In a recent trading statement, the company reported that it expects its normalised profit from operations to increase by between 15% and 20% compared to its 2025 results.
With this, the company could grow by 13% to 18%, and its Vitality composite could grow by 18% to 23%.
The company is currently predicting that normalised headline earnings will rise by 18% to 23%, which it attributes to lower finance costs.
“Normalised headline earnings are expected to increase by between 18% and 23%, enhanced by lower
finance costs, in line with the Group’s planned reduction in financial leverage,” Discovery said.
Headline earnings for Discovery could increase by between 31% and 36%, following the “gain on termination of the lease through the acquisition of 1 Discovery Place, the Group’s head office, as previously announced.”
For Discovery investors, earnings per share are expected to increase by 35% to 40%, to between R18.93 and R19.63.
Headline earnings per share (HEPS) are also expected to grow, with the company forecasting a 31% to 36% increase.
HEPS would therefore fall between R18.96 and R19.68, rising from R14.47 reported in the previous year.
Normalised HEPS are forecast to increase by between 18% and 23%, to between R17.35 and R18.09, compared to the normalised HEPS of R14.70 in the previous year.
Discovery’s full financial results for the year ended 30 June 2026 are expected to be released on 3 September 2026.
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