{"id":826484,"date":"2025-06-02T13:45:59","date_gmt":"2025-06-02T11:45:59","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=826484"},"modified":"2025-06-02T13:46:04","modified_gmt":"2025-06-02T11:46:04","slug":"momentum-launches-r1-billion-share-buyback","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/826484\/momentum-launches-r1-billion-share-buyback\/","title":{"rendered":"Momentum launches R1 billion share buyback"},"content":{"rendered":"\n

The Momentum Group has started a R1 billion share buyback, as the group’s normalised headline earnings reach R4.8 billion.<\/p>\n\n\n\n

The group said the positive trajectory established in its interim results continued into Q3 2025 (ending 31 March) despite the challenging operating environment.<\/p>\n\n\n\n

Despite the escalating geopolitical tensions and subdued economic growth, the group’s normalised headline earnings (NHE) reached R4.8 billion for the nine months ended 31 March 2025.<\/p>\n\n\n\n

The earnings run rate in the third quarter also aligned with the first two quarters, excluding the substantial favourable market-related variances of the first six months of approximately R500 million.<\/p>\n\n\n\n

The group’s results were underpinned by disciplined execution across its several business units, while a continued focus was on profitable growth.<\/p>\n\n\n\n

As measured by the present value of new business premiums (PVNBP), the group’s sales declined by 4% year-on-year, with the third quarter in line with the trend seen in the first two quarters.<\/p>\n\n\n\n

The value of the new business (VNB) continued to grow in Q3, even if it was slower than the first half of the financial year.<\/p>\n\n\n\n

Over the period, VNB was supported by a shift in new business mix toward more profitable lines and improved performance from Metropolitan Life.<\/p>\n\n\n\n

The reduction in the yield curve from 30 June 2024 to 31 March 2025 benefited the bond portfolios, while credit spreads on the annuity portfolios also contributed positively to earnings.<\/p>\n\n\n\n

The stronger equity market performance also supported higher fee income from investment contracts.<\/p>\n\n\n\n

The increase in direct expenses was slightly above inflation, mainly due to the long-term incentive plan on the back of the group’s substantial share price gains.<\/p>\n\n\n\n

The increased spend also impacted expenses to meet compliance requirements resulting from the two-pot retirement system reforms.<\/p>\n\n\n\n

“As reported in the interim results for the six months that ended 31 December 2024, benefits from the group-wide performance optimisation project will become more pronounced during FY2026,” said the group.<\/p>\n\n\n\n

The group has already saved R116 billion, which is expected to be realised over the next year.<\/p>\n\n\n\n

With the group’s cash generation remaining strong, it has received approval from the Prudential Authority for a R1 billion share buyback programme, which started on 14 May 2025.<\/p>\n\n\n

\n
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Source: Momentum<\/figcaption><\/figure><\/div>\n\n\n

Outlook<\/strong><\/h2>\n\n\n\n

The group said that despite the potential risks from local and global headwinds, its robust financial position allows it to achieve sustainable earnings, sales growth and long-term value creation.<\/p>\n\n\n\n

“From a market impact perspective, initial losses driven by tariff-related market shocks at the start of April have largely reversed,” said the group.<\/p>\n\n\n\n

“This underscores the resilience of our investment portfolio and the robustness of our balance sheet.”<\/p>\n\n\n\n

The group remains focused on delivering on its impact strategy, with progress already made on strategic initiatives.<\/p>\n\n\n\n

The group believes that it will reach its financial ambitions for FY2027, which includes Normalised Headline Earnings of R7 billion and ROE of 20%. <\/p>\n","protected":false},"excerpt":{"rendered":"

The Momentum Group is underway with a R1 billion share buyback, with the group optmistic of hitting 20% ROE by 2027. <\/p>\n","protected":false},"author":95,"featured_media":763909,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[6652],"class_list":["post-826484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-momentum"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826484","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=826484"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826484\/revisions"}],"predecessor-version":[{"id":826505,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/826484\/revisions\/826505"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/763909"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=826484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=826484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=826484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}