Old Mutual Holdings Limited has recorded a Kes 200 million profit before tax for the June half-year.
The company has attributed the improved profitability to a 12 percent growth in revenue to Kes 1.8 billion and increased investment income from financial assets and investment properties.
Old Mutual Group EA Chief Executive Officer Arthur Oginga noted that the strategy focuses on delivering its integrated financial services offering to meet all its customers' financial needs under one roof.
“This will enhance our customer experience and improve productivity on our distribution channels in our various markets,” Oginga added.
Due to rising interest rates and currency losses on the loan amount denominated in US dollars, finance expenses on borrowings rose by 96% over the same time in 2022.
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The interest rate for loans denominated in US dollars is based on the libor, which increased from 0.59 percent in June 2022 to 5 percent in June 2023.
During that same time, the value of the Kenyan shilling decreased by 14 percent relative to the US dollar.
Compared to operating earnings of Kes 100 million in 2022, operating profits before finance costs will be Kes 2.1 billion in 2023.
The group is optimistic about the region's economic prospects for the rest of the year. Still, it carefully monitors possible concerns from rising global oil prices and the negative effects of the El Nino weather phenomena.
