Momentum Group surpasses R7bn earnings target a year ahead of schedule

Momentum Group has reported a 13% increase in normalised headline earnings to R7.06 billion for the year ending June, surpassing its R7 billion earnings target a year ahead of schedule. The financial services group disclosed its results on Thursday, attributing the strong performance to improved operational performance across most of its businesses.

Momentum Group CEO Jeanette Marais expressed pride in the group exceeding its R7 billion earnings ambition earlier than planned, noting the stronger underlying operational performance. She highlighted that the improved results came despite market impacts having less of a role in the current year's profitability, indicating a better quality of earnings.

Every business within the group is now profitable, with five businesses delivering earnings over R1 billion each. The group's India health insurance business turned a R67 million loss into a R22 million profit during the year. Momentum Group's return on equity rose to 21.7%, and new business sales increased by 18% to R93.8 billion.

The company declared a final dividend of 120 cents per share, bringing its full-year dividend to 230 cents, a 31% increase from the previous year. Marais emphasized that households are still coping with high living costs, impacting financial decisions. To sustain momentum, the focus is on strengthening VNB and increasing sales volumes and market share in profitable products.

Momentum Group's Impact strategy, which blends technology with human expertise and deep client understanding, remains at the core of its operations and purpose of building and protecting clients' financial dreams.