Old Mutual Holdings recorded Kes 327 million net profit in the six months ending June 30, 2024 compared to Kes 195 million loss during a similar period last year.
In a statement on Friday, the Group attributed the growth to a reduction in finance costs, which fell from Kes 1.8 billion to Kes 529 million.
“This reduction followed the conversion of shareholder borrowing to equity in 2023 which is awaiting all the necessary regulatory approvals.”
“Additionally, the company benefited from a substantial improvement in its effective tax rate, which decreased by over half of its previous value — from 150 percent to 70 percent.”
However, operating profit declined from Kes 2.2 billion to Kes 1.6 billion in the period under review attributed to a rise in medical and flooding claims in Kenya and higher reinsurance expenses in Uganda.
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Similarly, the Group experienced a Kes 1.1 billion drop in other comprehensive income, driven by the translation effects of foreign currency-denominated subsidiaries into Kenya shillings, following the strengthening of the Kenya shilling.
“Despite the challenges we faced in the first half of the year, we are confident that our strategic initiatives and innovative approach will position us for a strong performance in the coming months,” said Arthur Oginga, the Group’s Chief Executive Officer.
