Old Mutual’s share price increased 2.97 percent to R11.79 yesterday morning after it reported that its results from operations would increase by between 77 percent – 97 percent for the six months to June 30.
Results from operations were expected to be between R3.88 billion and R4.32bn in the period, the group said in a trading statement yesterday. The interim results are expected to be released on August 30.
Adjusted headline earnings were expected to range between a 17 percent decline and a 3 percent increase, to between R2.4bn and R2.98bn.
Adjusted headline earnings per share were expected to vary between a 17 percent decline and three percent increase, to 52.9 – 65.6 cents, compared with 63.4 cents last year.
The comparative period in 2021 included the equity accounted earnings from the group’s strategic investment in Nedbank, which was unbundled in November 2021. The 12.2 percent stake in Nedbank that was distributed contributed R646m of the R2.9bn adjusted headline earnings in the comparative period.
Headline earnings were expected to be between 53 percent – 73 percent higher at R4.82bn – R5.5bn. Headline earnings was higher, because adjusted headline earnings excluded earnings from operations in Zimbabwe, adjustments in respect of equity and debt instruments held in life funds, as well as the impact of restructuring.
Earnings and adjusted earnings were primarily driven by the deferred tax associated with the unbundling of Nedbank, as well as an increase in respect of equity and debt instruments held in life funds.
BUSINESS REPORT