Staff Writer
HARARE: Old Mutual Zimbabwe reported a strong financial performance for the year ended December 31, 2025, with profit before tax rising 55 percent to US$60.6 million, as total revenue grew 29 percent to US$194.8 million on the back of robust growth across its banking, insurance and asset management units.
Profit after tax increased by 43 percent to US$40.2 million, while total assets expanded 21 percent to US$1.79 billion, reflecting growth in loans, investments and cash balances.
Fee and commission income surged 35 percent, complemented by a recovery in insurance service results, underscoring the resilience of the group’s diversified business model.
Group chief executive Samuel Matsekete said the performance reflects a deliberate strategy to drive topline growth while maintaining balance sheet strength in an improving macroeconomic environment.
“The strategy is being implemented against a backdrop of improving macroeconomic stability, enabling expansion in lending, deposit mobilisation and investment platforms,” he said.
The group’s banking arm, CABS, played a central role in the growth trajectory, with deposits increasing by 57 percent during the year.
The strong deposit mobilisation reduced reliance on external funding and improved the cost of capital, supported by increased customer confidence and broader access to banking services.
This underpinned a 33 percent growth in the loan book to US$259.8 million, up from US$195.1 million in 2024. Lending was directed towards key productive sectors, with agriculture accounting for 29 percent of the portfolio, followed by mining at 12.3 percent and energy at 4.5 percent.
Asset quality remained firm, with the non-performing loan ratio improving to 1 percent from 1.5 percent, reflecting prudent credit risk management. Net interest income rose by 13 percent, while non-funded income benefited from increased transaction volumes.
Digital transformation continued to support growth, with the group investing in core systems upgrades, automation and data analytics to improve operational efficiency and customer experience.
Its digital platform, O’mari, recorded a 69 percent increase in customers to over two million, while transaction volumes rose 45 percent.
The platform has become a key tool for financial inclusion, offering products such as nano-loans and micro-savings targeted at underserved communities and informal sector participants.
In the insurance segment, the group delivered strong gains driven by product innovation and expanded distribution. Life insurance revenue grew 79 percent, supported by increased uptake of risk products and funeral policies.
Gross premiums and pension contributions rose 44 percent to US$87.4 million, while policyholder funds increased by 18 percent to US$929.2 million.
General insurance operations also performed strongly, with gross written premiums rising 12 percent and profit before tax increasing 78 percent.
The group has also deepened its presence in the SME segment, which recorded a 15 percent increase in portfolio size, reflecting targeted efforts to support small and medium enterprises.
Asset management remained a key growth pillar, with funds under management rising 21 percent to US$1.45 billion, driven by strong inflows and positive investment performance. Retail participation increased significantly, with client funds growing by 123 percent.
During the year, the group invested US$16.5 million into alternative assets across sectors such as agriculture, manufacturing, renewable energy and construction.
It also committed US$68 million to renewable energy projects with a combined capacity of 73 megawatts, aligning with its sustainability and infrastructure development agenda.
The property portfolio remained stable, with occupancy levels at 78 percent and rental collections improving to 84 percent, indicating resilience despite pressures in the real estate market.
