Old Mutual Zimbabwe has reported a sharp increase in profit before tax to US$58.6 million in the six months to June 2026 up from US$17.6 million during the same period last year, as stronger investment returns, lending and fee income boosted performance.
The financial services group said its profit after tax rose to US$48 million compared with US$9.8 million in the first half of 2025 while total assets increased by 17% to US$2.1 billion.
The results were released against a backdrop of improved liquidity and stronger performance on Zimbabwe’s stock exchanges, with Old Mutual saying the Zimbabwe Stock Exchange (ZSE) and Victoria Falls Stock Exchange (VFEX) recorded significant gains during the period.
The group attributed the improvement partly to a surge in investment returns with its net investment result rising to US$53.4 million from US$2.3 million a year earlier.
Net fee and commission income also increased by 51% to US$38.3 million while net interest income rose 30% to US$22.5 million.
Old Mutual’s banking business recorded a 32% increase in net loans and advances reaching US$343.1 million, with lending growth particularly strong in agriculture, mining and mortgages.
Deposits grew by 17%, while the bank’s non-performing loan ratio remained at 1.1%, which the group said was within its internal and regulatory thresholds.
The group’s O’mari digital financial services business also expanded rapidly, with revenue-generating customers increasing by 71% and transaction volumes rising 139% year-on-year. Revenue from the business increased by 80%.
However, the banking division’s profit before tax fell by 14% to US$17.9 million which Old Mutual attributed to higher operating expenses linked to investment in technology infrastructure.
The insurance businesses also recorded strong growth.
Life insurance sales increased by 172%, driven by new corporate pension schemes, while the funeral services business reached break-even after revenue grew 65%.
General insurance gross written premiums rose 23%, while its underwriting margin improved from 11% to 15%, helped by stronger claims performance and growth in SME and non-motor retail insurance.
Old Mutual’s asset management business reported a 23% increase in funds under management to US$1.79 billion, supported by positive investment returns and strong cash inflows.
The group said it had also allocated US$15.3 million to alternative investments in renewable energy, hospitality and tourism projects.
The stronger financial position has allowed the company to declare an interim dividend of US$10 million, double the US$5 million paid in the first half of 2025.
Dividend cover improved to 4.8 from 1.97 during the comparable period.
Old Mutual also reported that its net assets increased by 44% to US$400.9 million while total assets rose from US$1.8 billion at the end of 2025 to US$2.1 billion.
In June, the company converted US$84.3 million in legacy debt into non-cumulative redeemable preference shares, a move it said had strengthened the balance sheet and supported its capacity for growth and cash generation.
For the second half of the year, Old Mutual expects growth to remain supported by macroeconomic stability and strong performance in the agriculture and mining sectors.
But it warned of risks from a projected El Niño drought and continued geopolitical uncertainty, while planning further investment in digital transformation and new products.
The group also highlighted its sustainability investments, including renewable energy, housing, food security and education.
Solar energy accounted for 26% of its total energy use, up from 22% in 2025.
