Discovery (DSY) H2 2026 earnings summary

Executive summary

• Achieved strong financial performance in FY 2026, with normalized profit up 17% to R17.75bn and headline earnings up 34% to R12.92bn year-over-year.

• Operating profit surpassed ZAR 17.75 billion, exceeding $1 billion for the first time, marking a significant milestone.

• Robust operating cash flow, up 26% to R11.3bn, with an 85% cash conversion ratio.

• Group Embedded Value rose 31% to R145.76bn, with a 14.1% return on embedded value.

• The group is in the second year of a five-year growth cycle, focusing on disciplined strategy, cash generation, and capital allocation.

Financial highlights

• Normalized profit: R17.75bn (+17% YoY); headline earnings: R12.92bn (+34% YoY); normalized headline earnings: R11.80bn (+21% YoY).

• Operating profit grew 17% year-over-year; profit before tax up 35%, and profit after tax up 38%.

• Dividend per share rose 33% to ZAR 3.84, with a final dividend of ZAR 2.73 per share, reflecting a 36% increase; dividend cover at 4.5x.

• Cash conversion ratio reached 85%, well above the 60%-70% target range; operational cash flow up 26% to ZAR 11.3 billion.

• Group Embedded Value: R145.76bn (+31% YoY); return on EV: 14.1%.

Outlook and guidance

• Ambition for normalized profit growth of 15%-20% CAGR and normalized RoE of 15%-20% by FY 2029.

• Bank targets ZAR 3 billion profit before acquisition costs and 2 million clients by FY 2029.

• Vitality Global Markets aims for $80-$100 million profit by 2029, with continued investment in AI and new partnerships.

• Ping An Health expects new business growth of 9%-20% in FY 2027, measured in RMB.

• Cash conversion ratio targeted at 60%-70% over the period; leverage maintained below 5x.