Momentum Group (MTM) Q2 2025 earnings summary

Executive summary

• Delivered normalized headline earnings of ZAR 3.437 billion for the six months ended 31 December 2024, up 44% year-on-year, with all business units contributing positively and strong segment performance.

• Achieved the same level of earnings in six months as in the full prior financial year, even after adjusting for once-off market variances.

• Declared an interim dividend of ZAR 0.85 per share, up 42%, and announced a further ZAR 1 billion share buyback.

• Strong operational performance across all segments, with notable turnarounds in Momentum Insure and Metropolitan, and robust cash generation.

• Impact strategy execution and digital transformation initiatives drove efficiency and profitability improvements.

Financial highlights

• Normalized headline earnings rose 44% to ZAR 3.437 billion; normalized headline earnings per share increased 48% to 245 cents.

• Interim dividend per share up 42% to 85 cents; dividend payout ratio at 35% of NHE.

• Return on equity annualized at 24.6%, the highest in the industry.

• Embedded value per share at ZAR 39.29, with share price trading at a discount to EV.

• Value of new business up 40% to ZAR 279 million, with new business margin improved to 0.7%.

Outlook and guidance

• Confident in achieving F2027 financial ambitions, targeting mid-teens group earnings growth, NHE of ZAR 7 billion, ROE of 20%, and VNB margin of 1–2%.

• Focus remains on profitable growth, disciplined risk management, and further cost optimization.

• Cautiously optimistic outlook, noting that favorable investment and underwriting conditions may not persist.

• Anticipates benefits from lower repo rates and inflation, with potential economic uplift from reduced load shedding and improved logistics.

• Remains focused on improving VNB and sales growth.