Discovery has flagged a sharp rise in interim profits amid growth across its business and a profit contribution from its bank.

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Shares of SA’s biggest medical scheme administrator, Discovery, rallied almost 7% on Thursday after it flagged about a rise of a quarter in its operating profit amid a strong showing from its insurance business and profit from its newish bank.

Discovery expects an up to 27% rise in normalised profit from operations for its six months to end December, and an up to 32% rise in headline earnings. The group had generated about R4.3 billion in headline earnings and R7 billion in normalised operating profit in the prior period.

The group expects profit at Discovery Bank to increase by up to R230 million in the first six months of its 2026 year, from a loss of R145 million previously, and it said its ramp-up is ahead of plan.

There was a further acceleration in the acquisition of clients, averaging approximately 1 500 customers per day by the end of the reporting period.

“Additionally, all key metrics performed well – the credit loss ratio, increases in non-interest revenue and net interest income – illustrating the consistent quality of customers and their levels of engagement and primacy.”

Discovery had launched the bank in 2017 as SA’s first “behavioural bank”. It has positioned the bank as the central client interface of its entire parent group, aiming to use its transactional capabilities to exploit cross-selling of its vast array of financial services.

READ | How Discovery Bank plans to reach R3bn profit by 2029

The group said on Thursday that Discovery Insure expects to book an increase in normalised operating profit of up to 37%, with Discovery citing a specific focus on pricing and claims management, while also maintaining quality of new business.

Discovery Health delivered strong new business growth, with an improved risk profile and expects a rise in normalised operating profit of up to 8%. At a per-share level, headline earnings are expected to rise by 30%.

Shares of Discovery had jumped about 6.9% on Thursday morning and have gained about 23% in the past year.