Sanlam expects earnings to skyrocket
Sanlam expects its headline earnings to jump by as much as 53% as the company benefitted from higher investment returns.
Sanlam informed shareholders today that it is in the process of finalising its financial results for the year ended 31 December 2023.
The company expects a massive jump in earnings and an up to 25% increase in its net result from financial services per share (NRFFS).
It also expects net operational earnings per share to grow by between 23% to 33%, due to higher investment returns on the shareholder capital portfolio, which also supported the growth in headline earnings.
Sanlam expects the following earnings ranges for the year ended 31 December 2023 –
| 2022(cents per share) | Expected increase | 2023 Expected(cents per share) | |
| NRFFS | 474 | 15% to 25% | 545 to 592 |
| Cash NRFFS per share | 474 | 15% to 25% | 545 to 592 |
| Net operational earnings per share | 501 | 23% to 33% | 616 to 666 |
| Headline earnings per share | 473 | 43% to 53% | 676 to 723 |
| Diluted HEPS | 466 | 44% to 54% | 671 to 718 |
| Earnings per Share | 598 | 12% to 22% | 670 to 730 |
| Diluted EPS | 590 | 12% to 22% | 661 to 720 |
Sanlam said the growth in NRFFS was strong across all lines of Sanlam’s business.
In particular, the increase was supported by:
- Strong risk experience in the life insurance business.
- Higher investment market levels and overall book growth supported asset-based revenue in the life and investment management lines of business, as well as good investment returns on insurance funds in the general insurance businesses.
- Improved performance from the credit portfolio backing life insurance liabilities.
- Higher loan advances in Sanlam’s Indian operations positively impacted the credit and structuring earnings.
The increase in earnings per share and diluted earnings per share is due to strong operational performance but partly dampened by lower accounting profit on disposal of operations.
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