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Old Mutual Ltd said on Friday it expects a tax hit from Nedbank Group Ltd and a poor performance from Zimbabwean unit to dent its 2022 earnings. The Anglo-South African financial services firm said basic earnings per share are likely to range between 151.3 cents and 181.0 cents in 2022, from 151.3 cents in 2021. Headline earnings per share are expected to be within range of 163.8 rand cents and 195.7 cents from 163.8 cents. Adjusted headline earnings per share is seen rising to between 127.2 cents and 150.9 cents from 118.5 cents. Adjusted headline earnings exclude earnings from operations in Zimbabwe, adjustments in respect of equity and debt instruments held in life funds, as well as the impact of restructuring. The movement in headline earnings and adjusted headline earnings was primarily driven by substantial improvement in operating profit, partially offset by the deferred tax associated with the unbundling of Nedbank and the decline in Zimbabwe earnings. Old Mutual unbundling a stake in Nedbank in November 2021. It unbundled to its shareholders 12.2% of a 19.4% stake in Nedbank. Old Mutual said the decline in Zimbabwe earnings was largely driven by the deterioration of Zimbabwean dollar to the rand and the decrease in investment returns on equities traded on the Zimbabwe Stock Exchange. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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