Old Mutual declares dividend

Published: 24 April 2018

Shareholders of integrated financial services group, Old Mutual Zimbabwe are smiling all the way to the bank after the group
declared a 7,11 cent per share at a time many companies are failing to reward their investors.

Many companies that announced financial results for the year to December 2017 did not declare dividends citing the need to preserve cash in an environment characterised by persistent liquidity challenges.

Old Mutual's company secretary Nqobile Munzara said the payment would be made on April 30.

"Notice is hereby given that on Thursday, February 15, 2018 the board of directors of Old Mutual Zimbabwe Limited declared a dividend of 7,11 United States per share," said Munzara.

This was after the insurance giant's profit after tax for the year to December 31, 2017, went up 139 percent to $219 million profit surge from $91,8 million due to improved business performance across all the company's units.

"The dividends accrue to members registered in the share register of Old Mutual Zimbabwe Limited at the close of business on Friday, April 25, 2018. Dividends warrants will be posted, or direct payments made on or about Monday, April 30, 2018. The last date to trade cum-dividend is Friday, April 20, 2018 while the ex-dividend date is on Monday, April 23, 2018," Munzara said.

The group's adjusted operating profit which is comprised of operating profit plus a normalised investment return on shareholder funds - was up 25 percent from $76,1 million to $95,5 million.

This was due to higher life, banking asset management profits and increased long-term investment returns on the back of a higher asset base.

The banking business recorded a net surplus growth of seven percent from $39,2 million to $42,1 million mostly driven by non-interest income as well as an improved non-performing loan ratio.

- Financial Gazette

Tags: OldMutual,