eBusiness Weekly
Business Writer
OLD Mutual sees vast growth opportunities in the country and maintains a positive long-term view of the economy, underpinned by the implementation of measures to support current stability, according to Group chief executive, Samuel Matsekete.
So many local and foreign firms share the same sentiments with the group and are prepared to invest huge sums of capital in the country despite some headwinds at times being experienced.
Said Matsekete; “The economy has got significant opportunities and potential and our view in the long term remains positive. We see in the immediate to short term that some subsectors are continuing to register growth which is significant in some subsectors.”
There are sector-specific green shoots within the environment, Matsekete noted, adding the Group can support the stability and the economic sectors that are registering growth.
He, however, said some uncertainties in some areas needed to be addressed especially on policy thrust.
Matsekete said there are also measures that the group believe are supporting the different sectors of the economy, and if those are seen through, the economy should be able to get the stability for growth to be maintained.
“The period we are getting into is the agriculture pre-season which needs to be funded. It will be also important to sustain levels of production that need to be seen in the forthcoming season,” he said.
Matsekete said that economic growth will be underpinned by implementation of measures to support improvement in key economic sectors.
He said that consistency of key policies to foster predictability and stability in the economy mainly in the monetary and external sectors will be key to sustain the stability and growth.
“As we look ahead into the second half of 2022, we will continue to focus on adapting our offering to the evolving environment and customer preferences, ensuring that overall risks are kept within appetite in the wake of potential and emerging risks in both the global and the local market,” said Matsekete.
Government’s tight monetary policy stance premised on aggressive interest rates has seen relative exchange rate and inflation stability. New assets such as gold coins have also enhanced market depth.
Matsekete said that in pursuit of growth opportunities, the African Development Bank (AfDB) approved a USD7.5 million trade finance transaction guarantee facility to CABS.
He said this resulted in growth in lending and investments in renewable energy, agriculture and other key economic sectors.
“An equivalent of US$16 million was deployed into alternative investment assets during the period while the stockbroking business continued to support growth of the capital markets and provide access to retail customers,” said Matsekete.
He noted that during the period under review, all Group companies are adequately capitalised and well positioned to support planned growth.
He added that the company expanded the breadth of services and functionality on MyOldMutual platform and continued automation of key processes enhanced efficiency and customer experience.
In terms of the individual line of business performance, the Banking division net loans and advances grew 30 percent to $78,4 million largely driven by USD loan book growth.
The Bank’s profits were impacted by expense growth year on year and monetary losses as a result of a surge in inflation. On a historical cost basis, net profit went up 651 percent.
In Life Insurance, growth in policy holder funds was driven by growth in property values and alternative investments funds that posted above inflation returns.
Higher premiums were driven by client retention and new business acquisition including some denominated in USD.
