CHAMWE KAIRA
Old Mutual Bank (OM Bank) continued to build its customer base during the first half of 2026, with customer numbers rising to 742 000 and retail deposits reaching N$1.4 billion, as parent company Old Mutual advances its strategy to establish the bank as a key growth driver.
Old Mutual said customer acquisition and deposit growth at OM Bank continued to track well during the six months ended 30 June 2026, supported by the group’s distribution footprint and integration opportunities.
The group said these initiatives are central to its pathway to achieving profitability at OM Bank by financial year 2028.
In September last year, the OM Bank said it had no immediate plans to expand into Namibia. Nawhal Foster, an official at OM Bank, told Observer Money that the new bank’s focus is on South Africa.
The update was contained in Old Mutual’s unaudited interim results released on Tuesday, which showed a solid first-half performance across the group, despite pressure in some parts of the business.
Old Mutual said gross loans and advances remained stable year-on-year, with growth in its Africa Regions business supported by higher disbursements following a shift towards sectors with larger loan sizes and improved credit quality.
This growth was offset by Old Mutual Banking, where loans and advances remained stable, reflecting what the group described as a disciplined lending approach.
At group level, Life annual premium equivalent (APE) sales increased 21%, while gross flows also grew 21%. The value of new business increased 32%, with the value of new business margin improving by 10 basis points.
Old Mutual attributed the sales growth to strong group risk and annuity sales in Old Mutual Corporate, higher living annuity and endowment sales in Wealth Management, and strong retail and corporate sales growth in its Africa Regions.
Results from operations per share increased 11%, supported by higher earnings from Old Mutual Life and Savings, as well as strong contributions from Old Mutual Investments and Old Mutual Africa Regions. Lower central costs also supported the improvement.
The performance was partly offset by lower underwriting earnings from Old Mutual Insure compared with a strong prior period and continued investment to scale OM Bank.
Old Mutual also declared an interim dividend of 40 cents per share, representing an 8% increase, and approved a further N$1 billion share buyback.
The latest buyback follows completion of a N$3 billion share repurchase programme, which contributed to a reduction in discretionary capital from R6.1 billion at the end of 2025 to R3.1 billion at 30 June 2026.
Old Mutual expects a N$4 billion dividend from Old Mutual Life Assurance Company (South Africa) Limited (OMLACSA)in the second half of 2026, which it said should contribute at least N$2 billion to discretionary capital.
Looking ahead, Old Mutual said it expects sales growth to moderate during the second half of the year because of the non-recurring corporate transactions recorded in the first half.
The group said its focus remains on improving competitiveness, building underlying growth momentum and continuing to execute its strategy, including establishing the right to win for OM Bank.
