Momentum Group (MTM) H2 2025 earnings summary

Executive summary

• Record normalized headline earnings of ZAR 6.26 billion for FY2025, up 41% year-over-year, with strong performance across all business units except Africa.

• ROE reached 21.2%, surpassing the 2027 target of 20%, and is among the highest in the industry.

• Final dividend of ZAR 1.75 per share, up 40% from prior year; final dividend of ZAR 0.90 per share; new ZAR 1 billion share buyback program approved.

• Successfully executed turnaround in Momentum Insure and Africa business, including the sale of the Ghana operation.

• Strategic focus on advice-led growth, value of new business (VNB), sales growth, collaboration, and operational excellence, with continued innovation and product launches.

Financial highlights

• Normalized headline earnings rose 41% to ZAR 6.26 billion; earnings per share up 46% year-over-year.

• Embedded value per share up 15% to ZAR 42.51; return on embedded value at 19% including dividends.

• Group VNB declined 20% to ZAR 469 million; new business margin fell from 0.7% to 0.6%.

• Sales volumes down 3% to ZAR 79.8 billion; Momentum Retail (+3%), Momentum Investments (+2%), and Africa (+27%) showed growth.

• Share buybacks totaling ZAR 4.25 billion approved, creating ZAR 2.2 billion in value uplift.

Outlook and guidance

• Management expects FY2026 to be tougher due to prevailing economic headwinds.

• Enhanced focus on improving VNB and new business margins, with a target of 1–2% margin by FY2027.

• India business expected to deliver over 30% premium growth in the near term, with potential for ZAR 1 billion profit by 2030.

• Dividend policy updated to a 50% payout target (range 40–60%).

• Well-positioned to deliver on FY2027 ambitions, leveraging strong financial position and operational momentum.