ZSE bull run boosts First Mutual net income

HARARE, (The Source) – First Mutual Holdings’ net income for the five months to May jumped by 44 percent to $4,36 million, spurred by an increase in investment income.

The Zimbabwe Stock Exchange has enjoyed a steady run since November last year. In the year to date, its market capitalisation has grown by a third to $5,330 billion as at end of day on Wednesday.

Chief executive Douglas Hoto told shareholders at the company’s general meeting on Wednesday that total investment income had risen from a loss of $581,000 during the same period last year to $5,52 million driven by a bull run on the local bourse where the company is invested.

Gross Premiums Written (GPW) fell by two percent from $49,08 million to $47,99 million in the five month period.

Rental income was down five percent from $2,8 million to $2,6 million, primarily because of downward reviews of rentals. Occupancy remained flat around 72 percent throughout the group’s property portfolio.

Total expenses were lower at $10,9 million from $11 million incurred in the same period last year as the claims ratio fell below 80 percent in the period.

Operating profit, however, dropped by 14 percent from $3,2 million last year to $2,8 million.
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