Momentum delivers record earnings, even as clients withdraw R5.4bn through two-pot system

Motheo Khoaripe (in for Stephen Grootes) is joined by Momentum Group CEO, Jeanette Marais, on The Money Show.

The Momentum Group has delivered record earnings for the financial year to end-June 2025.

The broad financial services group said its 'remarkable' performance reflected the strength of its diversified portfolio and disciplined execution of the Impact strategy.

Normalised headline earnings shot up by 41% to R6.26 billion for F2025.

NHE per share was up 46% to 451 cents, reflecting the impact of Momentum's share buyback programme, the Group said.

Headline earnings per share (HEPS) increased by 50% from 298.6 cents to 446.9 cents.

Momentum declared a final dividend of 90 cents per ordinary share, resulting in a full-year dividend of 175 cents per share - an increase of 40% from the prior full-year dividend.

Motheo Khoaripe asks Group CEO Jeanette Marais about how the financial stress the average consumer is under, reflected in their performance.

In its results, Momentum highlighted 'notable contributions' from annuity profits in Momentum Investments, improved new business profitability in Metropolitan Life, and higher earnings from the group risk business in Momentum Corporate, amongst others.

The numbers reflect basically two sides of the same coin, says Marais.

She notes that the COVID pandemic, on the one hand, helped people to realise the importance of having a financial plan.

"They realised the necessity, for instance, of having life cover, of making sure that in the event that 'life happens' they have the necessary cover in place."

Jeanette Marais, CEO - Momentum Group

"We see that, almost in spite of being under financial strain, the last thing they'd do is cancel a life policy."

Jeanette Marais, CEO - Momentum Group

On the other hand, she adds, in the past year since the two pot system came about, Momentum has seen 350,000 people withdrawing money from their pension funds, amounting in their case to R5.4 billion.

"The worst number for me is that 19% of those people are over 50 years old... It shows you this tale of so many people in such bad financial distress."

Jeanette Marais, CEO - Momentum Group

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