Published: 31 August 2025

Old Mutual Zimbabwe (OMZ) has transitioned to reporting in United States dollars across key subsidiaries, reflecting increased hard currency inflows and positioning the group for greater transparency and comparability. The move underscores stronger foreign currency earnings across its operations.

For the half year ending June 30, 2025, OMZ posted a profit after tax of ZiG264,81 million, down from ZiG475,98 million in the same period last year. The decline was largely attributed to accounting adjustments related to hyperinflation, as the group shifted from local currency (ZiG) to USD functional currency across some subsidiaries. OMZ CEO Sam Matsekete clarified that excluding non-recurring exchange gains and fair value adjustments, underlying business performance remained stable.

Despite the accounting-related dip in profit, OMZ reported a 77.1 percent increase in total revenue and other income to ZiG2 billion, driven largely by a 67.9 percent rise in insurance revenue to ZiG1,03 billion. The group also recorded a strong turnaround in its non-banking investment portfolio, achieving returns of ZiG618,62 million, reversing a loss in the prior period.

Matsekete noted that life insurance operations grew by 80 percent in revenue, driven by higher underwriting volumes, while general insurance posted an underwriting margin of 11 percent, reflecting disciplined risk pricing and improved claims experience. Banking and lending operations saw real growth of 9 percent in non-funded income, supported by increased USD lending and transactional activity. The non-performing loan ratio at CABS improved to 0.9 percent from 1.5 percent, although the microfinance unit experienced some liquidity-related repayment delays.

The group also advanced its inclusive finance agenda, securing dedicated funding to support smallholder farmers. Loans and advances increased to ZiG6,87 billion from ZiG5,25 billion in the prior period, with commercial and industrial loans dominating the portfolio, followed by unsecured personal loans and housing. This contributed to total assets growing to ZiG42,22 billion from ZiG39,77 billion last year.

OMZ's investment management division saw a 4 percent increase in funds under management, with net client cash flows of ZiG1,045 billion, of which ZiG331 million was allocated to alternative assets. The property portfolio maintained occupancy levels of 80 percent, while rental collections improved to 81 percent from 75 percent last year, demonstrating resilient asset quality and effective credit controls.

Looking ahead, OMZ's board and management plan to modernise the legacy business model, enhance customer-centric innovation, and embed disciplined execution across operations. OMZ chairperson Constantine Chikosi highlighted the group's strong capital position, enabling continued investment in strategic growth areas and sustained expansion of the loan book.

"The board remains focused on supporting the group's strategic repositioning, anchored in digital transformation, customer-centric innovation, organisational agility, and long-term sustainability. We continue to engage proactively with regulators, shareholders, and communities to advance inclusive financial services across Zimbabwe," Chikosi said.

The shift to hard currency reporting, coupled with solid revenue growth and improved asset quality, positions OMZ to strengthen its market presence while enhancing transparency for stakeholders in an evolving financial landscape.
- online

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