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Discovery Bank swung into profit in the six months to December, reporting earnings of between R210 million and R230 million after a loss of R145 million in the prior period, it announced in a trading update on Thursday.<\/p>\n
The group\u2019s share price firmed to a 52-week high as investors reacted positively to the operational update and trading statement.<\/p>\n
Read:
Discovery Bank\u2019s big UK visa centre move
Discovery buys head office from Growthpoint, Zenprop for R4bn<\/p>\n
\nThe stock changed hands at R263.81 at around 1pm \u2013 over 8% higher than the previous day. It closed at R262.30.<\/p>\n<\/blockquote>\n
Normalised headline earnings per share (Heps) are forecast to increase by 24-29% to between 842.7 cents to 876.7 cents, while basic earnings per share are expected to climb by 25-30%.<\/p>\n
Normalised profit from operations is projected to grow by 22-27%, supported by a 12% rise in new business annual premium income.<\/p>\n
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Headline earnings are expected to increase by 27-32%, reflecting what the group describes as a strong overall performance for the period.<\/p>\n
Discovery Bank performed ahead of plan and there was a further acceleration in the acquisition of clients, averaging approximately 1 500 customers per day by the end of the reporting period.<\/p>\n
Read: Big HealthyFood changes ahead at Discovery Vitality<\/p>\n
Salient figures\u00a0<\/strong><\/p>\n
Additionally, all key metrics performed well \u2013 the credit loss ratio, increases in non-interest revenue and net interest income \u2013 illustrating the consistent quality of customers and their levels of engagement and primacy, the group notes.<\/p>\n
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It says the Vitality shared-value model continued to drive performance across its South African and global operations, contributing to improved margins in short-term insurance, stronger returns on capital in long-term businesses and scalable growth in the bank.<\/p>\n
Expected growth in normalised profit from operations:<\/p>\n
\n
- Discovery Life: up between 13% and 18%;<\/li>\n
- Discovery Health: up between 3% and 8%;<\/li>\n
- Discovery Invest: up between 0% and 5%;<\/li>\n
- Discovery Insure: up between 32% and 37%;<\/li>\n
- Discovery Bank: profit increase of between R210 million and R230 million (from prior loss of R145 million); and<\/li>\n
- Discovery South Africa: up between 16% to 21%.<\/li>\n<\/ul>\n
Expected normalised profit from the Vitality international businesses:<\/p>\n
\n
- VitalityHealth: up between 95% and 100%;<\/li>\n
- VitalityLife: up between 5% and 10%;<\/li>\n
- Ping An Health Insurance: up between 33% and 38%;<\/li>\n
- Vitality Network: profit down 45% and 50%;<\/li>\n
- Vitality Health International (other): losses reduced by between 85% and 90%; and<\/li>\n
- Vitality (UK & global): up between 38% and 43%<\/li>\n<\/ul>\n
Discovery says further details will be released with its interim results, expected on Monday 3 March 2026.<\/p>\n
Read: Not only sleep-tracking, big Discovery Vitality changes ahead<\/p>\n
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