By Almot Maqolo.
Harare, Zimbabwe (News of the South) – Financial service group, Old Mutual Zimbabwe (OMZ) said cash inflows for the first quarter ended March 31, 2017 were below plan on the back of large withdrawals and regulatory changes.
In 2016, the group’s profit after tax grew by 590 percent to $91.8 million from $13.3 million recorded in 2015.
Adjusted operating profit (AOP) for the company which is comprised of operating profit plus a normalised investment return, was at $76 million, which was the same result as in 2015 albeit the deterioration in the business environment.
The banking business reported a net surplus growth of 38 percent to $39.2 million up from $28.4 million in 2015.
OMZ disbursed $22 million for the development of a small-to-medium enterprises (SMEs) center which is expected to be completed soon.
Speaking at the group’s 19th annual general meeting held in the capital, chief executive officer Jonas Mushosho said we are operating in a fairly “difficult” economic environment and therefore this update must be understood in the context of the environment in which we are operating.
“Cash inflows were below plan for the quarter due to a large withdrawal and regulatory changes in commutable pensions that led to higher outflows than anticipated.
“Non-commission expenses are marginally above the plan this is largely a timing issue as the business sort to acquire items earlier in the year to deal with the environmental challenges that are well known,” he said.
However, he said all business units are tracking in line with or above plan for the quarter.
“APO is higher than the plan and marginally below prior year this performance was largely supported by the life business and by the bank,” he said.
Mushosho said the group is making good progress on its strategic initiatives in the informal sector.
“The micro financial institution is now operational and the SME centre construction is progressing well and overall we are on track to meet what we have set ourselves to achieve this year,” he added.
As of the last financial period ending December 2016, the company’s total asset base was sitting on $12.6 billion which was a 9 percent increase.
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