Old Mutual, Africa’s largest insurer by assets, is accelerating its push into the banking sector. The financial giant is aggressively working to turn its newly launched retail lender, OM Bank, into a profitable enterprise by 2028, challenging traditional South African banks for a larger share of industry earnings.
The Rise of OM Bank: Targets and Trajectory
Officially launched in August 2025, OM Bank has rapidly gained traction in the highly competitive South African market. The insurer has already invested over R4 billion in building the lender from the ground up, with an additional R2 billion earmarked to fund its pathway to profitability.
CEO Jurie Strydom outlined a confident growth trajectory for the new banking arm, which has already amassed 742,000 customers and reached R1.38 billion in deposits.
OM Bank’s Strategic Milestones & 2028 Targets:
- Customer Base: Expected to cross the 1 million customer mark within the coming weeks.
- Deposit Growth: Projected to scale to as much as R10 billion by 2028.
- Lending Book: Targeted to grow to a substantial R26 billion.
- Profitability: Aiming for a return from operations between break-even and R200 million by 2028.
Capital Allocation: Doubling Down on Share Buybacks
While expanding its banking footprint, Old Mutual is simultaneously prioritizing capital efficiency through an aggressive share buyback program.
According to Strydom, this strategy is highly attractive given the steep discount between the company’s current trading price and its intrinsic value. With the average purchase price sitting around R13 this year against a group equity value of R20.66 per share, the buybacks are highly accretive for existing shareholders.
Strydom explained:
Whilst our business is operating at a return on net asset value below…
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