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SA-owned Zim units post earnings growth

Aug 13 2015 11:04
Malcom Sharara

Harare - SA-owned, Zimbabwe-based financial services units reported growth in both the top and bottom line for the half-year ended June 30 2015.

Old Mutual Zimbabwe, which is owned by Old Mutual [JSE:OML], reported a 2% growth in its adjusted interim operating profit, driven by strong performance of the banking and insurance units.

Basic earnings per share increased to 3.8 US cents from 2.8c in the previous comparative period.

Revenue for the unit grew by 4% to $126m, with management saying the performance was very good “when you take into account the environment”.

Meanwhile, Nedbank [JSE:NED] unit MBCA Bank also reported growth in profits, with profit after tax increasing 42% to $2.6m.

The bank’s net loans and advances to customers increased by 23% to $114m, while total deposits increased by 36% to $189m.

The results by the two units were achieved on the back of a challenging operating environment.

MBCA chairperson Willard Zireva said the first half of 2015 was characterised by general economic decline due to persistent generalised price reduction.

“This was a result of limited foreign investment flows, poor performance of the agricultural sector, liquidity constraints, growing informal employment as well as falling global commodity prices,” said Zireva, adding that inadequate power and water supply also played a negative role in the country's economic performance.




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