Old Mutual anticipate a loss run rate of R1.1 billion to R1.3 billion. However, they believe it will reduce over time as revenue is generated, reaching break even in 2028.
Old Mutual, known for offering financial solutions, including investment, savings, insurance, and banking, is set to launch a standalone bank before the end of 2025.
The news was announced in the insurer’s financial results for the year ended 31 December 2024 on Tuesday.
Old Mutual was given the green light after meeting the remaining section 17 conditions and regulatory approval to appoint Clarence Nethengwe as CEO of Old Mutual Bank.
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A new era for Old Mutual
The results say Old Mutual has constituted the bank’s board of directors, with Nomkhita Nqweni as the inaugural Chairperson.
“These appointments will oversee the execution of our gradual, risk-based customer acquisition strategy, culminating in a full national rollout by the fourth quarter of 2025.”
They have also received the Prudential Authority from the South African Reserve Bank (Sarb) approval for their banking licence in March 2025.
How much Old Mutual spent on building the bank
“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,” reads the results.
Old Mutual anticipate a loss run rate of R1.1 billion to R1.3 billion. However, they believe it will reduce over time as revenue is generated, reaching break even in 2028.
“Our next key milestones include a phased approach to customer acquisition, integrating the Old Mutual Rewards Programme and positioning Old Mutual Bank to reach breakeven in the medium term.”
The bank will first be launched in multiple phases. It will first be offered to a number of Old Mutual employees and then users of its existing Money Account product before being rolled out nationwide.
Growth in profit
The group recorded 4% to R8.7 billion increase in profit for the financial year 2024.
It also delivered 14% growth in adjusted headline earnings, while adjusted headline earnings per share increased by 17%.
“This performance reflects a strategic focus on profitable organic growth in the core, disciplined capital allocation to new growth engines and investment in operational efficiencies,” said Group CEO Iain Williamson.
“Implementing a digital two-pot retirement solution in South Africa was a key delivery in 2024 for Old Mutual, with over 275 000 claims processed, of which 99% were submitted via WhatsApp.”
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