Old Mutual (OMU) H1 2026 earnings summary

Executive summary

• Announced CFO succession: Ranen Thakurdin to become CFO in April 2027, ensuring leadership continuity.

• Achieved strong growth in key financial metrics, with ROGEV at 12.7% and interim dividend per share up 8% to 40 cents.

• Delivered R1 billion in share buybacks and cumulative R936 million in net cost savings, on track for R2.5 billion by FY 2027.

• Life APE sales rose 21% to R7.9 billion, and gross flows increased 21% to R128.9 billion.

• Strategic focus on cost discipline, customer acquisition, and integration of banking operations supported growth.

Financial highlights

• ROGEV rose to 12.7% (up 860 bps year-over-year), normalized RONAV up to 12.6%, both exceeding cost of capital.

• Dividend increased by 8.1% to 40 cents per share, within 6%-9% target range.

• Group equity value per share at R20.66, supported by a R1 billion share buyback.

• Life APE sales and gross flows up 21%; underlying growth at 12% after adjusting for large corporate gains.

• RFO per share up 11%, within 10%-14% medium-term target.

• Adjusted headline earnings per share down 27%-30% due to lower shareholder investment returns.

Outlook and guidance

• Medium-term targets: ROGEV 14–16%, normalised RONAV 15–17%, dividend growth 6–9%, VNB margin 2–3%.

• Targeting sustainable RFO per share growth of 10%-14% off 2025 base.

• OM Bank cluster aiming for breakeven to R200 million RFO by 2028, with customer and deposit growth targets reaffirmed.

• H2 to benefit from R4bn OMLACSA dividend and further discretionary capital deployment.

• Focus remains on shareholder distributions while RONAV is below target range.