Momentum Group announced a 13% increase in normalized net profit, reaching 7.06 billion rands for the year ending in June. This allowed the financial group to surpass its planned target of 7 billion rands a full year earlier than scheduled.
The group published its results on Thursday, noting that strong performance was driven by improved operational activities across most of its divisions. Momentum Group CEO, Jeannette Marais, expressed pride that the group had achieved the 7 billion rand goal ahead of schedule, adding that the improved results reflect stronger underlying operational efficiency.
Marais emphasized that a positive factor is the higher operational productivity in most business units, while the impact of market factors this year was less pronounced on profitability. She noted that this indicates an improvement in the actual quality of earnings. Furthermore, she reported that every single business unit was profitable, with five of them generating over 1 billion rands in revenue for the year.
Five businesses exceeded 1 billion in revenue
Two of these five divisions, Momentum Retail and Momentum Corporate, were already generating annual revenues exceeding 1 billion rands. The other three—Metropolitan Life, Momentum Investments, and Guardrisk—surpassed the 1 billion rand mark due to improved operations and the implementation of development and recovery plans.
The group also reported the successful turnaround of its health insurance business in India: a loss of 67 million rands was converted into a profit of 22 million rands. Momentum Group's return on capital ratio increased to 21.7%, and new business sales grew by 18%, reaching 93.8 billion rands.
The group announced a final dividend payment of 120 cents per share, increasing the total annual dividend to 230 cents, which is 31% more than the previous year.
Marais stated that households continue to cope with high living expenses, which affects their financial decisions. She added that to maintain the current trajectory, focus must be placed on increasing Net Business Volume (VNB), growing sales volumes, and market share in profitable products. She also stressed that the group's 'Impact' strategy focuses its work by combining advanced technology with trusted human advice and a deep understanding of customer needs, always remembering its mission—to build and protect clients' financial dreams.