Discovery to open bank in 2018

Adrian Gore (pictured), Discovery CEO, has confirmed that the company is on track to open a bank next year. Gore was speaking at the group’s annual financial results presentation, where he described Discovery’s performance over the year as “robust”.

Highlights include normalised profit from operations up 10 percent, to R7.05 billion; core new business annualised premium income increased by 16 percent, to R16.99 billion; and gross inflows under management up by 10 percent, to R115.06 million.

Gore said:

"Discovery made significant progress during the year under review towards meeting our stated targets, drawn together in our 2018 Ambition. The group achieved an acceleration in new business growth, combined with strong operating profit gains, notwithstanding our substantial undertaking of significant new initiatives, including the global expansion of the Vitality Shared-Value Insurance model."

According to Gore, Discovery received authorisation from the Registrar of Banks on 25 October 2016 to establish a banking presence in South Africa. The company has 12 months to fulfill the conditions set by the Registrar and to make application for final approval in terms of Section 16 of the Banks Act.

Gore said that significant progress has been made in developing the system infrastructure, operating processes, regulatory engagement, and the customer value proposition, with a number of key milestones having already been reached.