Old Mutual Banking Push, Huge Buyback, CEO Transition Ignite OMU Share Price Recovery
Old Mutual (JSE: OMU) impressed investors with strong half-year results, a R3 billion share repurchase program, and fresh momentum under...
Quick overview
- Old Mutual reported strong half-year results, with adjusted headline earnings rising 29% to R4.2 billion.
- The company announced a R3 billion share repurchase program and appointed new leadership to drive strategic initiatives.
- Old Mutual's share price has increased by over 6% this week, reflecting renewed investor confidence and technical breakouts.
- The launch of OM Bank aims to enhance the company's competitiveness in digital finance, supported by significant capital investments.
Old Mutual (JSE: OMU) impressed investors with strong half-year results, a R3 billion share repurchase program, and fresh momentum under new leadership, sending shares higher by more than 2.5% on Wednesday.
Market Performance
After a prolonged lull, Old Mutual’s share price has shown renewed strength. The stock advanced 6% this week, trading around R13.80 after breaking through key resistance levels. The rally follows a technical breakout and has been fueled by optimism over new strategic initiatives.
Leadership Transition
Jurie Strydom officially took over as Group CEO on June 1, 2025, ushering in a shift toward cash generation and return on equity value as key performance measures. He emphasized a direct link between strategy, execution, and value creation, highlighting the company’s renewed operational clarity.
The leadership shake-up also includes the appointment of Prabashini Moodley as CEO of the newly established Life and Savings division, effective August 1. These changes mark a more progressive and fintech-driven approach to growth.
Technical and Historical Performance
Earlier in 2025, Old Mutual rebounded from an April low of R9.30, climbing over 30% to R12.50 in June. However, resistance at long-term moving averages capped gains, leading to a temporary pullback in July.
Momentum returned in August, as buyers pushed the price closer to R15, testing the upper range of resistance. A confirmed breakout above this level could establish a stronger long-term uptrend.
Old Mutual Delivers Strong Interim Earnings Growth
Financial Performance
- Adjusted headline earnings rose 29% to R4.2 billion for H1 2025 (six months ended 30 June)
- Return on net asset value climbed to 15.5%, meeting the group’s target range.
- Results from operations increased 16%, while shareholder investment returns surged 88%.
- Group equity value fell to R18.40 per share, driven by methodology changes and business impacts.
- Value of new business margin declined to 1.3%.
Dividends and Capital Allocation
- Interim dividend declared at 37 cents per share, up 9% year-on-year.
- Board approved a share buyback of up to R3 billion.
Business Segments and Sales
- Life APE sales edged up 1%, with strength in Old Mutual Africa Regions and retail risk volumes.
- Lower guaranteed annuity sales in Personal Finance weighed on growth.
- Gross written premiums advanced 5%, led by strong expansion in Old Mutual Insure.
New Banking Operations
OM Bank, opened to staff earlier in 2025, is positioned to:
- Leverage R1.5 billion in deposits.
- Deploy R15.5 billion in lending operations.
- Utilize a 346-branch distribution network for expansion.
Strategic Priorities
Beyond capital returns, Old Mutual is investing heavily in its new banking arm, OM Bank, positioning itself to compete in digital and decentralized finance markets. Strydom’s fintech expertise is expected to play a crucial role in this transition, aligning the business with evolving consumer and technology trends.
Conclusion: Old Mutual’s half-year update reflects financial strength, decisive leadership changes, and a clear pivot toward innovation. While the share price still faces technical resistance, the combination of buybacks, banking growth, and a fresh strategic vision suggests the company is positioning itself for a sustained recovery in a rapidly digitizing financial landscape.
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