Momentum Group achieves record earnings, boosts dividend payout

Momentum Group Limited reported a remarkable set of results for the year ended 30 June 2025, with basic earnings increasing by 55% to R5,978 million and diluted headline earnings per share growing by 50% to 437.1 cents. Normalised headline earnings (NHE) grew by 41% to R6,260 million, while operating profit surged by 52% to R5,481 million. The Group's total assets rose by 14% to R802,823 million, contributing to a 10% increase in total equity to R32,954 million.

The Group's board approved an updated dividend policy targeting an ordinary dividend payout range of 40% to 60% of NHE, declaring a final dividend of 90 cents per ordinary share, bringing the total dividend for the financial year to 175 cents per ordinary share. This represents a payout ratio of 44% of NHE for the second half. Additionally, the Group completed R2 billion in share buyback programs, repurchasing 29.1 million shares at an average discount of 19% to the embedded value of R42.51 per share.

New business PVNBP decreased by 3% to R79,793 million, and VNB declined by 20% to R469 million. However, the contractual service margin (CSM) increased by 5% to R20,435 million, demonstrating underlying growth in core life insurance operations. The return on equity increased to 21.2%, up from 15.5% in the prior year, reflecting the higher NHE.