Discovery is expecting a strong rise in earnings, with Discovery Bank adding 1,500 customers per day. <\/p>\n\n\n\n
In an operational update for the first half of the 2026 financial year, the group said that its Vitality Shared-value (SV) model had a significant impact across both its local and global composites. <\/p>\n\n\n\n
“This manifested in superior margins for the short-term businesses, superior returns on capital for the long-term businesses and scalable growth in value for Discovery Bank,” said Discovery. <\/p>\n\n\n\n
“Discovery SA\u2019s robust operating performance reflects compelling contributions from each business within the South African composite.” <\/p>\n\n\n\n
Discovery Bank saw performance ahead of plan, with further acceleration in client acquisition. The bank acquired an average of 1,500 customers per day by the end of the reporting period. <\/p>\n\n\n\n
The group said the bank’s other key metrics performed well, including its credit loss ratio, non-interest revenue, and net interest income.<\/p>\n\n\n\n
It said this performance illustrates the “consistent quality of customers, their levels of engagement, and their primacy”.<\/p>\n\n\n\n
Overall, Discovery Bank is expected to see its profit increase by between R210 million and R230 million for the period, following a loss of R145 million in the prior period. <\/p>\n\n\n\n
The group added that Discovery Health delivered strong new business growth, with an improved risk profile expected to benefit the scheme. <\/p>\n\n\n\n
“Earnings growth was solid, as a result of continued scalability and cost efficiency, fully absorbing a once-off administration concession to members of R125 million disclosed in December 2025,” it said. <\/p>\n\n\n\n
Discovery Life’s operating profit for the period grew, driven by the continued favourable mortality and morbidity experience. <\/p>\n\n\n\n
Discovery Life’s new business grew 16% on an embedded value (EV) basis, driven by a recovery in group life. <\/p>\n\n\n\n
Total API also declined slightly, due to the impact of lower inflation rates on automatic contribution increases (ACIs) and lower umbrella fund sales, both of which are not incorporated into the EV basis. <\/p>\n\n\n\n
Discovery Invest benefited from strong growth in its capital markets and positive net flows.<\/p>\n\n\n\n
However, the rate of earnings growth was dampened by an in-period asset-liability matching loss related to the steep decline in yields, following the prior-period asset-liability matching gain. <\/p>\n\n\n\n
Excluding this, Discovery Invest’s earnings increased by 21%, in line with asset growth. New business was robust, with API increasing 13%. <\/p>\n\n\n\n
The group said that Discovery Insure delivered a strong result, with rigorous implementation of the SV model resulting in a substantial increase in operating margin. <\/p>\n\n\n\n
Discovery Insure specifically focused on pricing and claims management, while maintaining the quality of new business.<\/p>\n\n\n
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