Discovery earnings jump 21% as bank turns profitable

Discovery’s full-year earnings rose as South Africa’s largest health-insurance administrator benefited from years of strategic investment and as profit from its banking division climbed.

Normalised headline earnings jumped 21% to R11.8 billion in the 12 months ended 30 June, supported by gains from its South Africa and Vitality business, the Johannesburg-based company said in a statement on Thursday. It declared a final dividend of R2.73 per share, bringing the total annual payout to R3.84.

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The financial-services company is reaping the benefits of an aggressive expansion phase that began in 2018, investing in South Africa and elsewhere on the continent as well as the UK, Europe, Asia, Canada and the US.

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Its bank swung from a loss in the prior year to post its first full-year profit of 370 million rand.

Discovery’s net income climbed 39% to R13.1 billion.