|Shareholders are referred to Old Mutual?s Interim Results announcement dated 31 August 2018, wherein the company declared an interim dividend of 45 cents per share and a special dividend of 100 cents per share, which will be paid on 16 October 2018. |
Shareholders on the London, Malawian, Namibian and Zimbabwean registers will be paid in the local currency equivalents of the interim and special dividends. In Malawi, Namibia and Zimbabwe these payments will be made through dividend access trust or similar arrangements established in each country.
Furthermore, Old Mutual confirmed that the exchange control approval for the payment of a special dividend, has now been obtained from the South African Reserve Bank. The payment of the special dividend is therefore unconditional and will be paid in terms of the timetable set out in the aforementioned SENS announcement.
|The Group released their maiden interim results following its listing therefore there are no comparatives. Gross insurance premium revenue was R39.7 billion, net earned premiums were R36.4 billion and total revenue was recorded at R67.9 billion. Profit after tax for the financial period attributable to equity holders of the parent was recorded at R10.6 billion. In addition, headline earnings per share was 168.1 cents per share.|
Old Mutual declared an interim dividend of 45 cents per share.
The Group also declared a special dividend of 100 cents per share.
In July, the SARB revised their 2018 GDP forecast for South Africa down to 1.2% from 1.7%, a reflection of a deteriorating outlook in SA. Recent announcements of foreign investments into SA as well as progress in improving the management of SOEs show potential for an economic turnaround, however this is likely to only take place in the medium to long term.
The International Monetary Fund (IMF) forecast 3.4% growth for sub-Saharan Africa, with a revised forecast for Zimbabwe at 2.4% (up from less than 1%), and more than 2% growth in the East and West African countries we operate in. This presents the opportunity for our operations in those regions to grow their consumer base and product lines.
Global growth is still expected to rise, assuming trade tensions and market risks do not result in a downturn that will affect global and local markets.
In spite of the deteriorating SA growth outlook, the above macroeconomic risks and strong competitive pressures, we remain confident in delivering solid 2018 results mostly aligned with our previously communicated medium term targets. AHE will continue to be influenced by investment returns in South Africa and Zimbabwe.
|Nedbank Group delivered a strong performance in the first half of 2018, assisted by our share of associate income from ETI as it returned to profitability, while our managed operations delivered positive, but slower, earnings growth in line with our expectations. Headline earnings of R6.7 billion increased 27.0% and ROE (excluding goodwill) improved to 18.4%. Slow revenue growth and a gradual increase in impairments were offset by good cost management. We maintained a strong balance sheet, as evident in our IFRS 9 fully phased-in CET1 ratio of 12.4% and the interim dividend per share increasing by 13.9%. Total assets exceeded R1 trillion for the first time.|
Nedbank continues to make good progress in delivering market-leading client value propositions and digital innovations. This focus has enabled us to increase our total client base to over eight million for the first time, grow revenues and unlock operating efficiencies. In the second half of 2018 we look forward to the launch of more exciting innovations for clients. Our strategic enablers, including ongoing technology investments, our people, our culture and our brand, are creating a more client-focused, agile, competitive and digital Nedbank.
Given the strong growth in diluted headline earnings per share in the first half of 2018, together with expectations of a slowly improving economic outlook and ongoing delivery on our strategy, our guidance for growth in diluted headline earnings per share for 2018 remains unchanged, being in line with our medium-to-long-term target of greater than or equal to GDP plus CPI plus 5%.
|Nedbank Group Ltd., the majority-owned South African banking subsidiary of Old Mutual Ltd., released a trading statement on 26 July 2018. |
The following is the full text of the Nedbank Group?s announcement:
Nedbank delivered a strong performance in the first half of 2018 assisted by their share of associate income from ETI as it returned to profitability, while managed operations delivered positive earnings growth in line with the group's expectations.
The Nedbank board is satisfied that there is a reasonable degree of certainty that headline earnings per share (HEPS) and basic earnings per share (EPS) for the six-month period ended 30 June 2018 will be as follows:
- HEPS of between 1 350.5 cents and 1 405.4 cents, which is between 23% and 28% higher than the 1 098 cents per share reported for the six months to 30 June 2017; and
- Basic EPS of between 1 344.4 cents and 1 399 cents, which is between 23% and 28% higher than the 1 093 cents per share reported for the six months to 30 June 2017.
Nedbank?s results for the six months ended 30 June 2018 will be released on the JSE Stock Exchange News Service on Tuesday, 7 August 2018.
|Old Mutual noted that its subsidiary, Old Mutual plc, has announced the results of the tender offers (the ?Offers?) in respect of its GBP500 000 000 8 per cent. Subordinated Notes due 3 June 2021 (of which GBP340 884 000 is currently outstanding) (ISIN: XS0632932538) (the ?2021 Securities?) and its GBP450 000 000 7.875 per cent. Subordinated Notes due 3 November 2025 (of which GBP60 842 000 is currently outstanding) (ISIN: XS1312138750) (the ?2025 Securities? and, together with the 2021 Securities, the ?Securities?) today, 18 July 2018.|
The tender offers expired at 4:00 p.m., London time, on 17 July 2018.
Old Mutual plc has decided to accept for purchase all Securities validly tendered pursuant to the Offers. Settlement of the Offers is expected to take place on 19 July 2018, following which the nominal amount of the principal outstanding of the 2021 Securities shall be GBP72 102 000 and the nominal amount of the principal outstanding of the 2025 Securities shall be GBP44,889,000. Old Mutual plc will deploy approximately GBP334 million of its available liquidity in settlement of the Offers.
The premiums paid to incentivise take-up of the Offers will result in a charge to Old Mutual?s consolidated profit and loss, and a corresponding decrease in its consolidated net asset value, of approximately GBP14 million (ZAR 248 million, based on a closing ZAR/GBP exchange rate on 17 July 2018 of 17.39). However, there will be no impact on Old Mutual?s consolidated results from operations, adjusted headline earnings and return on net asset value, because these key performance indicators exclude the results and net assets of the Residual Old Mutual plc entities as non-core operations.
|Old Mutual noted that its subsidiary, Old Mutual plc, has announced the launch of tender offers in respect of its outstanding GBP500 000 000 8 per cent. Subordinated Notes due 3 June 2021 (of which GBP340 884 000 is currently outstanding) (XS0632932538) and its outstanding GBP450 000 000 7.875 per cent. Subordinated Notes due 3 November 2025 (of which GBP60 842 000 is currently outstanding) (XS1312138750) today, 9 July 2018.|
The purpose of the tender offers is to utilise available liquidity to manage Old Mutual plc?s debt maturity profile by reducing outstanding indebtedness and to reduce interest costs.
|Old Mutual announced that admission of, and commencement of unconditional dealings in, the ordinary shares of Old Mutual to the Johannesburg Stock Exchange Ltd. (JSE), the London Stock Exchange (LSE), the Namibian Stock Exchange, the Zimbabwe Stock Exchange and the Malawi Stock Exchange took place at 9.00 a.m. SAST today, 26 June 2018. |
Following the Second Scheme becoming effective on 25 June 2018, Old Mutual is now the holding company of Old Mutual plc. The UK Listing Authority has cancelled the listing of Old Mutual plc shares on the premium listing segment of the Official List and the LSE has cancelled the trading of Old Mutual plc shares on the LSE's main market for listed securities, in each case with effect from 9.00 a.m. SAST today. It is expected that Old Mutual plc shares will be delisted from the JSE, the Namibian Stock Exchange, the Zimbabwe Stock Exchange and the Malawi Stock Exchange on 29 June 2018.
Appointment of Advisors
Old Mutual has, in addition to its current auditor, KPMG Inc., appointed Deloitte as a joint external auditor to Old Mutual with effect from today, 26 June 2018.
BofA Merrill Lynch is acting as joint financial adviser and sponsor to Old Mutual in connection with the Managed Separation.
Rothschild is acting as independent financial adviser to Old Mutual in connection with the Managed Separation.
Defined terms used but not defined in this announcement have the meanings set out in the pre-listing statement published by Old Mutual on 20 April 2018 (the ?PLS?).
|The Group has an ambition to become a premium financial services group in sub-Saharan Africa and currently offers a broad spectrum of financial solutions to retail and corporate customers across key markets in 17 countries.|
The Group?s lines of business include Life and Savings, Property and Casualty, Asset Management and Banking and Lending. It distributes products and services to customers through a multi-channel distribution network spanning tied and independent advisers, branches, bancassurance, direct and digital channels, and worksites.