Old Mutual on Tuesday shared an update on the progress of its new OM Bank launch.
“We are excited to share our progress on launching OM Bank, having met the remaining section 17 conditions and received regulatory approval for the appointment of Clarence Nethengwe as CEO of OM Bank, said Iain Williamson, who will be stepping down as the CEO and executive director of the Old Mutual on 31 August 2025
He said that Old Mutual has constituted the board of directors of the bank, with Nomkhita Nqweni as the inaugural chairperson.
These appointments will oversee the execution of our gradual and risk-based customer acquisition strategy that will culminate in a full national roll out by the fourth quarter of 2025, he said.
“Between 2022 and 2024, we have spent a cumulative R2.8 billion to build the bank and to secure a deposit-taking retail banking license. We anticipate a loss run rate of R1.1 billion to R1.3 billion, which will reduce over time as revenue is generated, reaching break even in 2028,” Williamson said.
He said that the group’s next key milestones include a phased approach to customer acquisition, integrating the Old Mutual Rewards Programme and positioning OM Bank to reach breakeven in the medium term.
“OM Bank is designed to deliver tangible value for our customers and to position us for long-term competitive advantage in an intensely competitive market. By leveraging our existing customer base, a highly trusted brand and our expansive distribution network, we are uniquely positioned to deliver a digital-first bank at scale to the market and create value for our shareholders,” Williamson said.
The chief executive said that the group’s cloud-based platform offers a seamless, scalable single facility account with debit, credit, overdraft and savings facilities, giving customers greater financial control while lowering cost to serve.
Old Mutual on Tuesday (18 March) posted solid financial results for 2024, reflecting its strategic focus on sustainable, organic growth, disciplined capital allocation, and operational efficiencies.
The company reported a 14% increase in adjusted headline earnings, with adjusted headline earnings per share rising by 17%.
In South Africa, a combination of political stability, including the formation of the Government of National Unity, and improved macroeconomic conditions helped boost investor confidence.
Notable improvements such as reduced load shedding, benign inflation, strong equity market returns, and a stronger South African rand were seen as signs of economic recovery in the second half of the year, it said.
However, despite these positive signals, consumer confidence remained subdued, with household debt to disposable income staying high at 62.2%, and the high interest rate environment continued to challenge the company’s retail operations.
Old Mutual reported a 4% growth in results from operations, with a 7% increase in results from operations per share. Excluding investments in new growth initiatives, results from operations rose by 10%, driven by strong underwriting results in Old Mutual Insure, and solid contributions from Wealth Management and Old Mutual Investments.
These were partially offset by lower profits in the Personal Finance segment. Old Mutual Africa Regions continued to deliver strong earnings, with all segments contributing over R1 billion to results from operations.
The company said its cash generation profile remains robust, with cash remitted from subsidiaries totalling R10.5 billion for the year, representing 158% of adjusted headline earnings—significantly exceeding the target range of 70-80%.
The group’s board declared a final dividend of 52 cents per share. This brings the total dividend for 2024 to 86 cents per share, reflecting a 6% increase from the previous year, with a dividend cover of 1.6 times.
