Old Mutual's Om Bank Targets Breakeven In Three Years

OM Bank, set up by Old Mutual , received its licence from the South African Reserve Bank's Prudential Authority on Friday, Old Mutual CEO Iain Williamson said in an interview on Tuesday. The bank will be fully functional by the fourth quarter, he said.

The new bank will report losses of as much as R1.3-billion until it breaks even, Williamson said. Almost 85 of the nation's residents have bank accounts. Apart from the six established lenders, OM Bank is likely to face competition from new firms including one controlled by billionaire Patrice Motsepe, and fintech companies.

The Johannesburg-based company's adjusted headline earnings rose 14 to to R6.7-billion, above an average of analysts estimates. c 2025 Bloomberg LP