Momentum Group (MTM) investor relations material

Executive summary

• Normalized headline earnings rose 8% to R3,695 million, with robust operational profit growth and strong contributions across business units; interim dividend increased 29% to 110 cents per share.

• Sales increased 11% to R43.3 billion, with notable growth in Momentum Africa (28%), Momentum Corporate (23%), and Momentum Investments (12%).

• The group’s diversified model and federated operating structure enabled resilience amid market volatility and regulatory changes.

• Embedded purpose and culture behaviours enabled multiplied execution and operational excellence.

Financial highlights

• Normalised headline earnings per share increased 12% to 275 cents; embedded value per share rose 13% to R44.55.

• Return on equity (ROE) remains high at 24%, above the 20% target, despite a slight decline from the prior year.

• Value of new business (VNB) declined 15% year-on-year to R238 million; new business margin fell to 0.5% from 0.7%.

• Interim dividend per share increased by 29% to 110 cents; dividend payout ratio at 40% of NHE.

• Operating profit grew 10% to R3,127 million; expenses increased by 3%, below inflation.

Outlook and guidance

• Focus remains on improving VNB and maintaining profitable growth, with continued investment in digital, AI, and advice capabilities.

• The group maintains F2027 ambitions: NHE of R7 billion, ROE of 20%, and VNB margin of 1–2%.

• Bonitas Medical Fund administration contract expected to be profitable, with significant upfront investment before June 2026.

• No further share buybacks planned in the near term as surplus capital is reallocated to strengthen solvency.

• Management expects continued modest growth in South Africa, supported by lower inflation and improved energy supply, but notes ongoing challenges from unemployment and cost of living.