Momentum Metropolitan Holdings has seen a robust profit increase for the six months ending 31 December 2023 (H1 2024). <\/p>\n\n\n\n
Using the new International Financial Reporting Standard (IFRS 17) for insurance contracts for the first time, the group said that its headline earnings jumped by 42% from R1.5 billion to R2.1 billion, while its operating profit jumped 69% from R1.2 billion to R2.0 billion. <\/p>\n\n\n\n
Sales also increased, with the group’s present value of new business premiums (PVNBP) rising by 18% to R39.1 billion. <\/p>\n\n\n\n
That said, the value of new business (VNB) declined by 38% to R200 million.<\/p>\n\n\n\n
\u201cOur business model of empowered, accountable businesses has again demonstrated its resilience and agility, enabling the Group to continue to report robust earnings and solid financial results while withstanding the challenging operating environment,” said Group CEO Jeanette Marais.<\/p>\n\n\n\n
\u201cEven though we managed to increase sales volumes, the high cost of acquiring new business placed our new business margin under pressure. We are giving significant attention to new business pricing, cost of acquisition and improving the sales mix\u201d.<\/p>\n\n\n\n
With the jump in profits, the group upped its interim dividend by 20% to 60 cents per share. <\/p>\n\n\n\n
As per the group’s capital management framework and considering its strong liquidity position, the board approved a further R500 million for future share repurchases. <\/p>\n\n\n\n Like many other CEOs in South Africa, Marias has expressed concern over South Africa’s weak economic growth (GDP growth of 0.6% in 2023), compounded by the ongoing electricity and water crises. <\/p>\n\n\n\nFinancials<\/strong><\/td> H1 2023<\/strong><\/td> H1 2024<\/strong><\/td> Change<\/strong><\/td><\/tr> Earnings (Rm)<\/td> 2 060<\/td> 2 191<\/td> +6%<\/mark><\/td><\/tr> Headline earnings<\/td> 1 540<\/td> 2 191<\/td> +42%<\/mark><\/td><\/tr> Operating profit (Rm)<\/td> 1 195<\/td> 2 025<\/td> +69%<\/mark><\/td><\/tr> Basic earnings per share <\/td> 144.5<\/td> 159.9<\/td> +11%<\/mark><\/td><\/tr> Basic Headline earnings per share <\/td> 108.0<\/td> 159.9<\/td> +48%<\/mark><\/td><\/tr> Interim Dividend<\/td> 50<\/td> 60<\/td> +20%<\/mark><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n