Old Mutual Zimbabwe says adjusted operating profit for the quarter to March 31 was above target but marginally below last year, supported largely by life business and banking arm, CABS, according to chief executive, Jonas Mushosho
He told shareholders at the company’s 19th annual general meeting that all businesses were trading in line with or above the plan for the quarter.
However, cash inflows were lower than the target on the back of unanticipated large withdrawals.
“Cash inflows were below plan for the quarter due to a large withdrawal and regulatory changes in commutable pensions that led to higher outflow than anticipated,” said Mushosho.
Non-commission expenses are marginally above plan, largely due to timing as the business sort to acquire items earlier in the year to deal with the environmental challenges, he added.
Old Mutual expects to launch a microfinance institution and open a mall for small businesses during the year, which Mushosho said will boost the company’s financial performance in the year.
The microfinance institution has already started training and vetting potential clients and will be targeting the informal sector to promote financial inclusion, with CABS focusing on the formal sector.
“We are on track to achieve what we have set for this year,” said Mushosho.- The Source