Old Mutual Zimbabwe delivered a strong financial performance for the year ended December 31, 2025, recording a 55% increase in profit before tax to US$60.6 million, driven by solid growth across its banking, insurance and asset management operations.

Total revenue rose 29% to US$194.8 million, reflecting improved business volumes and expanding customer activity across the group’s diversified financial services platform.

Profit after tax climbed 43% to US$40.2 million, while total assets grew 21% to US$1.79 billion, supported by expansion in lending activities, investment portfolios and stronger cash positions. Income from fees and commissions surged 35%, alongside improved insurance service results.

Group chief executive Samuel Matsekete said the performance reflects a deliberate strategy focused on revenue growth while maintaining balance sheet resilience.

He noted that relative macroeconomic stability supported growth in lending, deposit mobilisation and investment activity during the period.

The group’s banking subsidiary, CABS, emerged as a key contributor, with deposits increasing 57%, helping reduce reliance on external funding and lowering the cost of capital.

The stronger deposit base supported loan book expansion, which grew 33% to US$259.8 million from US$195.1 million in 2024. Lending remained concentrated in productive sectors, with agriculture accounting for 29% of the portfolio, followed by mining at 12.3% and energy at 4.5%.

Asset quality remained firm, with the non-performing loan ratio improving to 1% from 1.5%, reflecting disciplined credit risk management. Net interest income rose 13%, while higher transaction volumes boosted non-funded income.

Digital transformation continued to underpin growth. The group invested in system upgrades, automation and data analytics to enhance operational efficiency and customer experience.

Its digital financial services platform, O’mari, expanded its user base by 69% to more than two million customers, while transaction volumes increased 45%. The platform continues to advance financial inclusion through nano-loans and micro-savings products targeting underserved communities and informal sector participants.

In the insurance division, life insurance revenue grew 79%, supported by stronger uptake of risk products and funeral cover. Gross premiums and pension contributions increased 44% to US$87.4 million, while policyholder funds rose 18% to US$929.2 million.

General insurance operations also recorded significant improvement, with gross written premiums rising 12% and profit before tax increasing 78%.

The group expanded its presence in the SME sector, where the portfolio grew 15%, reflecting targeted financing initiatives for small and medium-sized enterprises.

Asset management remained a major growth pillar, with funds under management increasing 21% to US$1.45 billion on the back of strong inflows and favourable investment performance. Retail participation accelerated sharply, with client funds rising 123%.

During the year, Old Mutual Zimbabwe invested US$16.5 million in alternative assets spanning agriculture, manufacturing, renewable energy and construction. A further US$68 million was channelled into renewable energy projects with a combined capacity of 73 megawatts, aligning with the group’s sustainability and infrastructure development strategy.

The property portfolio remained stable despite pressures in the real estate market, maintaining occupancy levels of 78% while rental collections improved to 84%, signalling continued resilience in the sector.