OLD MUTUAL TO LAUNCH NEW BANK
Come 2025 South Africa will have a new bank.
Old Mutual CEO Iain Williamson announced the news in the group’s financial results for the first six months of the financial year.
“I am proud of the continued progress in the disciplined execution of our strategy and considered capital allocation.”
Williamson continued by saying OM Bank forms part of the group’s strategy to build an integrated financial services business.
“This has translated into the successful completion of industry testing and integration of OM Bank into the National Payment System in line with the Prudential Authority’s section 17 conditions.”
Although the bank’s initial launch was planned for 2024, it has now said it will officially launch in 2025.
OM Bank is set to target the mass market and be a direct competitor for Capitec.
BusinessTech reports that the adjusted headline earnings for the Old Mutual Group, an essential metric for distributable earnings, grew by 3%, supported by a 14% increase in shareholder investment returns due to improved performance in South African equities.
Williamson said the “positive investor sentiment on South Africa following the general election outcome and the forecasted policy rate cuts reset the base case for growth during the second quarter of the period under review”.
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