NAIROBI, Kenya, Sep 27 – Old Mutual Holdings Limited has posted a Sh200 million profit before tax for the half year ended June this year.
This is on the back of a Sh900 million loss before tax that was posted during a similar period last year.
The firm attributes improved profitability to a 12 percent growth in revenue to Sh1.8 billion as well as increased investment income from financial assets and investment properties.
“Our strategy is focused on delivering our integrated financial services offering to meet all our customer’s financial needs under one roof,” Old Mutual Group EA Chief Executive Officer Arthur Oginga said.
“This will enhance our customer experience and improve productivity on our distribution channels in our various markets,” Oginga added.
Finance costs on borrowings were up 96 percent over the same period in 2022 due to increased interest rates and forex losses on the portion of the US dollar-denominated debt.
The libor, on which interest is determined for US dollar loans, has moved from 0.59 percent in June 2022 to 5 percent in June 2023, while the Kenya Shilling depreciated by 14 percent against the US Dollar over the same period.
Operating profits before finance costs will be Sh2.1 billion in 2023, compared to Sh100 million in 2022.
For the remainder of the year, the group is positive about the region’s economic outlook but carefully notes potential risks from rising global oil prices and the adverse effects of the El Nino weather phenomenon.
