Latest news with #MomentumGroup
IOL News
4 days ago
- Business
- IOL News
Momentum Group's third-quarter performance showcases resilience in challenging times
Momentum Group's earnings run rate in the third quarter was in line with the first two quarters, excluding the substantial positive market-related variances of the first six months Image: Supplied Momentum Group's positive financial trajectory at the half-year stage continued into the third quarter, the insurance, investment, and healthcare financial services group said in an operating update on Monday. 'The group delivered solid operational performance despite escalating geopolitical tensions and subdued economic growth, with normalised headline earnings (NHE) of R4.8 billion for the nine months ended 31 March 2025,' its directors said. Recurring premiums increased by 5% in the quarter to R3.1bn. Single premiums fell by 7% to R43.66bn. New business present value premiums fell by 4% to R58.04bn. Total expenses were up by 5%. The number of health members under administration increased by 4%. 'The earnings run rate in the third quarter was in line with the first two quarters, excluding the substantial positive market-related variances of the first six months (of approximately R500 million),' the directors said. They said the results were underpinned by 'disciplined execution across the business units and a continued focus on profitable growth.' The decline in the third-quarter new business present value premiums experience was in line with the trend in the first two quarters. The value of new business (VNB) continued to grow in the third quarter, albeit slower than in the first half. VNB was supported by a shift in new business mix toward more profitable lines and improved performance from Metropolitan Life. Credit spreads on annuity portfolios contributed positively to earnings. Stronger equity market performance supported higher fee income from investment contracts. Direct expenses increased marginally above inflation, largely due to the long-term incentive plan awards on the back of the group's strong share price gains. Other contributing factors on expenses included increased spending to meet compliance requirements from regulatory changes, and IT investment to implement the two-pot retirement system reforms. Benefits from a group-wide performance optimisation project were expected to become more pronounced in the 2026 financial year. To date, R116 million in savings was expected to be realised over the next year. In Momentum Metropolitan Life, the main life insurance entity in the group, the solvency cover ratio (SCR) decreased from 2.15 times at December 31, 2024, to 2.02 times at March 31, with the decrease reflecting strong operational earnings, offset by dividend payments to the group and an increase in the SCR. Momentum Retail's earnings benefited from a solid performance from the protection business and higher investment income on required capital. Favourable market variances contributed positively to earnings. Although still positive, mortality and morbidity experience variances were lower than in the prior period. Momentum Retail's new business premium value improved by 2%. Metropolitan Life's earnings were primarily driven by the improvement in new business profitability, notably on the protection business, following product commerciality and distribution optimisation initiatives. Earnings continued to benefit from positive persistency experience variance. Momentum Corporate's new business premium values fell by 29% to R8.2bn, mainly due to lower FundsAtWork single and recurring premium new business and the impact of sizable single premium large flows in the prior period. 'We are pleased with the performance the Momentum Group achieved over the period. We remain focused on delivering on the Impact strategy, with continued progress on strategic initiatives gaining momentum,' directors said. BUSINESS REPORT Visit:
Zawya
30-05-2025
- Business
- Zawya
From dependency to empowerment: Why we need to transform CSI in Africa?
Corporate social investment (CSI) is meant to change lives. But what happens when it does the opposite? Tshego Bokaba, CSI Manager at the Momentum Group Foundation Across Africa, well-meaning initiatives – designed in boardrooms, backed by big budgets and rolled out with fanfare – have long been positioned as a force for good. But what if, in trying to help, we're sometimes making things worse? In too many cases, CSI projects miss the mark: fostering dependence instead of empowerment, duplicating efforts already underway, or overlooking the very people they're meant to serve. As Africa reflects on transformation during Africa Month, it's time to ask harder questions about how – and why – corporate giving can backfire. We've seen programmes that distribute food parcels without investing in food security, or those that introduce technology into schools without training teachers or ensuring the infrastructure exists to support it. These are not just inefficiencies – they are missed opportunities, and in some cases, they actively disempower communities. This is not to say that CSI is inherently flawed. But when it's not rooted in context, consultation and co-creation, it can do more harm than good. Consultation is vital One of the most common missteps I've seen is designing projects for communities rather than with them. Too often, corporates decide what a school, clinic, or neighbourhood needs, without ever speaking to the school governing body, community leaders, or the people who live there. Even the best-resourced interventions can fall flat if they're out of step with local realities. In my view, there are five key principles that every CSI practitioner should treat as non-negotiable: research, consultation, co-creation, listening, and partnership. These may sound simple, but they require humility and a willingness to let go of control. Just because we have the resources doesn't mean we have all the answers. The result of bypassing this process is often what I call performative CSI: initiatives that look good in a press release but lack any meaningful or lasting impact. It's when we treat communities like passive recipients instead of equal partners. It's when we focus on meeting KPIs instead of solving real problems. And it's when we forget that behind every number in a dashboard is a person with dreams, struggles and potential. More than just quick fixes CSI in Africa must be about more than optics. We have a responsibility to confront the inequalities that still define too many lives – children who walk long distances to overcrowded schools, families without access to clinics, young people with no clear path to employment. Real impact means going beyond short-term gestures and investing in solutions that last. It means removing the everyday obstacles that chip away at people's dignity, potential and hope. That's why I believe we need to move toward collaborative, sector-wide approaches. The challenges we face – whether it's poverty, unemployment, education or access to healthcare – are too layered and too urgent for any one organisation to tackle alone. Corporates, non-profits and government must work together in coordinated, transparent and scalable ways if we're serious about lasting change. There are strong signs that the sector is beginning to shift. According to the Next Generation trends and insights research report 2025/2026 on the social, solidarity and impact economies of South Africa, future transformation should focus on improving sector effectiveness, strengthening local organisations, reducing duplication, and encouraging more sustainable, locally driven solutions. This includes enabling organisations to generate their own income and diversify funding models, ensuring they're not entirely reliant on donor capital. Leadership development We also need to build the next generation of leaders: individuals and institutions who are equipped to respond to the rapidly evolving social and economic realities of our continent. Africa's problems are unique, and our solutions must be too. This Africa Month, I want to challenge my peers across the CSI and development space to ask harder questions. Not just 'How much did we give?' or 'How many people did we reach?' but rather, 'Who did we speak to?' and 'What changed?' and also 'What do the communities themselves say they need next?' Show up with open ears and open minds, not just open wallets. The stakes are too high for us to get this wrong. If we want to be part of the solution, we must be willing to rethink the way we give – and, more importantly, the way we listen.
IOL News
29-05-2025
- Business
- IOL News
How to spot and avoid banking scams: fake threats and extortion explained
Momentum Group, a prominent player in South Africa's financial services sector, has alerted the public to an alarming increase in scams leveraging the power of 'deepfake' technology. Discover the alarming rise in banking scams targeting customers through fake compliance threats and extortion tactics. Image: File photo. There has been a significant rise in extortion, email, and text scams (phishing) targeting banking customers, resulting in considerable financial and emotional distress for thousands in recent months. The growing sophistication of these schemes, with fraudsters continually adapting their tactics to deceive individuals into sharing sensitive information. In some cases, victims are even coerced into transferring money into the fraudsters' accounts. Here are common tactics used by scammers in recent months and ways to protect yourself: Fake non-compliance notifications Fraudsters are exploiting the bank's need for compliance with the Financial Intelligence Centre Act (FICA). They are purporting to be the bank, sending our customers emails and SMSs, claiming that their accounts are not FICA compliant. Their emails and SMSs include malicious links, urging customers to click on them or risk their accounts being blocked or closed. Upon clicking on the link, customers may be routed to a fake login site or prompted to capture sensitive information such as their card number, expiry date, customer verification value (CVV), or One-Time-Pin (OTP). In some instances, the link may disrupt the customer's device, giving the fraudsters remote access and total control. Extortion scams Extortion scams often involve threats to harm individuals, expose sensitive personal information about them, or tarnish their reputations unless a ransom is paid. We're increasingly seeing fraudsters impersonate respected bodies such as the South African Reserve Bank (SARB), Sars, or the SAPS. They claim to be investigating customers for serious offences, anything from fraud to money laundering. In some schemes, victims are given a fake account number and instructed to transfer all their funds for the duration of the 'investigation.' In others, the criminals allege they possess compromising material such as private photographs, financial records, or other personal details, and demand payment in exchange for keeping it confidential. These fraudsters go to extreme lengths to convince the targeted individual that they are from legitimate authorities. This includes telephone calls, emails, and documents and they sometimes suggest physical meetings. The internet has become a prime hunting ground for fraudsters. Customers need to be wary of the information they share on social media platforms as cybercriminals are becoming increasingly sophisticated in their orchestration. What to do if you are targeted Stay calm, do not panic. Fraudsters often use fear to manipulate victims. Take time to verify the legitimacy of the claims. Never send money or click on a link in response to unsolicited messages. Legitimate organizations, including banks, will never ask for payments or sensitive information this way. If you believe your bank account may be compromised, contact your bank's fraud department right away. They can help you secure your account and investigate the issue. Regularly review your bank and credit card statements and report any suspicious activity. Standard Bank encourages its customers to stay informed on the latest scams, and adopt and enable features on their banking app to help protect themselves. Khan is the head of fraud risk management at Standard Bank. PERSONAL FINANCE
eNCA
22-05-2025
- Business
- eNCA
Impact of fuel levy on household expenses will be dire
JOHANNESBURG - Belts are tight enough and there is no breathing space, due to the high cost of living. And still, Finance Minister Enoch Godongwana did not adjust the salary brackets for inflation. He increased the fuel levy, which will push up inflation. Next month, petrol goes up by 16 cents a litre and diesel by 15 cents. This is the first fuel levy increase in three years. Godongwana said this alone would not close the fiscal gap over the medium term. Consumer financial education specialist at Momentum Group Salem Nyati says there simply is no breathing space for South Africans. She says when you look at the ratio of the actual household debt verses disposable income it adds to 62% According to Nyati this means that for every R2000 that the household earns R600 goes towards servicing debt. At that point the household has not eaten nor have they bought electricity or transport, she says.
IOL News
19-05-2025
- Business
- IOL News
FSCA warns South Africans about unauthorised financial activities
Momentum Group, a prominent player in South Africa's financial services sector, has alerted the public to an alarming increase in scams leveraging the power of 'deepfake' technology. The FSCA has issued a warning about Mr. Lethabo Molefe, who is soliciting investments with unrealistic returns. The public is urged to verify the legitimacy of financial services to avoid scams. The Financial Sector Conduct Authority (FSCA) has issued a public warning regarding financial services offered by Mr. Lethabo Molefe, urging caution when engaging in financial transactions with him. The FSCA has identified that Molefe has been soliciting funds for investment purposes, promising unrealistic returns to members of the public. Individuals were recruited via Telegram groups, where they were assured a return of R9,000 from an initial investment of R900. Deposits were made into a Capitec Bank account linked to Mr. Thato Rapelego. Upon investigation, the FSCA contacted Rapelego for comment. He stated that he does not provide financial services and alleged that his bank account was used without his authorisation. Molefe was unavailable for comment. While the FSCA does not provide details on their business activities, it emphasises that neither Molefe nor Rapelego is authorised under any financial sector law to offer financial services to the public. The matter is now being referred to the South African Police Service for further action.
