Momentum reports record earnings amid challenging conditions

MOMENTUM Group delivered record, normalised headline earnings (NHE) of R6.26 billion in the year to June 30, up a remarkable sector beating 41% on the prior financial year, which was already a record year.

- EDWARD WEST

Operating profit increased by 52% from R3.6bn to R5.48bn, very strong growth for a large insurance-based financial services group in South Africa's currently weak economic environment. Competitor Sanlam, for instance, reported 20% growth in normalised net results in the six months to June 30, while Old Mutual grew its adjusted headline profit by 29% for the same period. "I am satisfied our results reflect the strength of the diversified portfolio and disciplined execution of our Impact Strategy," said CEO Jeanette Marais in an online interview.

She said that the 2026 financial year is likely to be difficult considering the weak economic environment, stating, "growth won't just fall in our lap," but the first quarter had been strong, although margins "everywhere" were under pressure.

"Although the pressure on our clients' disposable income is expected to continue, affecting new business volumes which place pressure on margins, our Impact Strategy strongly anchors our execution, operations, and financial position," said Marais. She mentioned they have R3bn available for acquisitions and potential large internal growth projects.