Asset manager Coronation has seen a slight increase in earnings, but it warns that South Africa’s low economic growth will continue to strain savings and investments.<\/p>\n\n\n\n
In its interim results for the six months ended 31 March, the group said the period was marked by heightened uncertainty primarily due to trade tariffs and protectionism in the USA.\u00a0<\/p>\n\n\n\n
In South Africa, global tensions were exacerbated by disagreements in the Government of National Unity (GNU) over the 2025 Budget.\u00a0<\/p>\n\n\n\n
While the country now has a budget that appears to have support from the GNU, the initial budget uncertainty unwound much of the positive re-rating South Africa enjoyed after the 2024 national election.\u00a0<\/p>\n\n\n\n
\u201cIn this complex operating environment, we have remained true to our long-term investment philosophy and continue to invest strategically in the sustainability of our business,\u201d it said.<\/p>\n\n\n\n
\u201cWe have delivered solid interim financial results under these challenging circumstances.\u201d <\/p>\n\n\n\n
Total assets under management (AUM) increased slightly to R676 billion (30 September 2024: R667 billion), while average AUM increased by 9% to R677 billion (31 March 2024: R619 billion).\u00a0<\/p>\n\n\n\n
Net outflows moderated year-on-year from 4% to 3% on average AUM. <\/p>\n\n\n\n
Although this is encouraging, the group noted that the South African savings and investment industry has been contracting for over a decade.\u00a0<\/strong><\/p>\n\n\n\n This is due to high unemployment, high indebtedness and low economic growth.<\/p>\n\n\n\n The group said that industry outflows are expected to continue until there is sufficient economic growth to reverse these trends. <\/p>\n\n\n\n Looking at the financials, the group\u2019s operating expenses increased by 7% year-on-year, as it focused on tight expense management while also future-proofing its business.\u00a0<\/p>\n\n\n\n \u201cA key aspect of this is retaining our team of talented individuals in an increasingly globalised industry where the competition for scarce skills is fierce.\u201d<\/p>\n\n\n\n The company continues to invest heavily in information technology, data management, and maintaining our excellent reputation for good governance and compliance. <\/p>\n\n\n\n Fund management earnings per share attributable to ordinary shareholders were up 8% at 200.2 cents per share. <\/p>\n\n\n\n Basic and headline earnings per share also increased by 2% to\u00a0205.1 cents per share. The group\u2019s interim dividend per share increased by 8.1% to 202 cents per share.\u00a0<\/p>\n\n\n\n Asset manager Coronation says South Africa’s savings and investment industry has been contracting for over a decade, and won’t stop until the country sees stronger economic growth.<\/p>\n","protected":false},"author":95,"featured_media":784873,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[10917],"class_list":["post-825703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-coronation"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=825703"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825703\/revisions"}],"predecessor-version":[{"id":825741,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825703\/revisions\/825741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/784873"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=825703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=825703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=825703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Financials<\/strong><\/td> H1 2024<\/strong><\/td> H2 2024<\/strong><\/td> % Change<\/strong><\/td><\/tr> Revenue (Rm)<\/td> 1 893<\/td> 2 037<\/td> +8%<\/td><\/tr> Profit for the period<\/td> 701<\/td> 725<\/td> +3%<\/td><\/tr> Earnings per share (cents) <\/td> 200.5<\/td> 205.1<\/td> +2%<\/td><\/tr> Interim Dividend (cents)<\/td> 185<\/td> 200<\/td> +8%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n","protected":false},"excerpt":{"rendered":"