Momentum Group (MTM) investor relations material

Executive summary

• Achieved record normalized headline earnings of over ZAR 7 billion for FY 2026, up 13% year-over-year and a full year ahead of the 2027 target, with all business units profitable and five contributing more than ZAR 1 billion each.

• Sales grew 18% to ZAR 94 billion, with strong contributions from Africa (+45%), Corporate (+38%), and Investments (+16%).

• Return on equity (ROE) rose to 21.7%, exceeding the 2027 target and ranking among the industry's highest.

• Dividend per share increased 31% year-over-year to ZAR 2.30.

• Strategic focus on purpose, culture, and integration drove exponential improvement and positive shifts across the group.

Financial highlights

• Normalized headline earnings reached ZAR 7.1 billion; adjusted for one-offs, normalized earnings are ZAR 6.6 billion.

• Earnings per share rose 18% to 530 cents, reflecting both earnings growth and share buybacks.

• Embedded value per share increased 19% to ZAR 50.60; return on embedded value (ROEV) was 24% for the year.

• Value of new business (VNB) up 5% to ZAR 491 million, despite a ZAR 200 million decline in annuity VNB.

• Dividend payout ratio for the year was 43%.

Outlook and guidance

• Management expects continued strong performance, with further improvements in VNB and profitability targeted.

• Surplus capital will be evaluated for optimal deployment, including potential buybacks or strategic investments over the next 3–6 months.

• Ongoing focus on performance optimization, digital transformation, and capital efficiency.

• Clear improvement plans for each business unit, with targeted earnings and VNB growth for FY 2027.