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.

• Achieved the same level of earnings in six months as in the full 2023 financial year, even after adjusting for once-off market variances.

• Strong operational performance and profitability, supported by digital transformation, cost optimization, and favorable operating conditions.

• Impact strategy execution progressing well, with notable improvements in value of new business (VNB) and sales volumes.

Financial highlights

• Normalized headline earnings rose 44% to ZAR 3.437 billion; earnings per share increased 48% to ZAR 2.45; interim dividend per share up 42% to ZAR 0.85.

• Return on equity annualized at 24.6%, up from 17.4% year-over-year.

• Embedded value per share at ZAR 39.29, up 12% year-on-year.

• Value of new business increased 40% to ZAR 279 million; new business margin improved to 0.7%.

• Dividend payout and buybacks resulted in a 60% year-on-year increase in capital distribution to shareholders.

Outlook and guidance

• Confident in achieving F2027 financial ambitions, with a focus on improving VNB and sales growth.

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

• Performance optimization project targeting ZAR 1 billion in cost savings is underway.

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