Old Mutual has no plans to dispose of Nedbank

International long-term savings group Old Mutual has made it clear it has no plans to dispose of Nedbank.

Old Mutual CEO Julian Roberts says in the group’s annual report that the “particular shape and history of Old Mutual in our heartland, South Africa, makes Nedbank an extremely important element of our comprehensive financial services offering there”.

“Not only are the financial needs of both Old Mutual and Nedbank’s customers comprehensively covered through the products and services of both companies,” he adds, “but the potential for each company to sell to each other’s customer base is enormous.

“In addition, real annual savings realised through synergies between Mutual and Federal, Nedbank and Old Mutual [South Africa] account for more than R1-billion.

“The untapped potential for even further synergies is a prize worth fighting for.”

Roberts points out that Nedbank CEO Tom Boardman sits on the Old Mutual Group Executive Committee precisely because the extraction of this value is too much of a priority not to have the bank represented at the highest levels of the parent company.

“Nedbank is a very well run business and - within the disciplined and prudent banking environment which is the South African banking regime—has weathered the effects of the global credit crunch well,” Roberts said.

“South Africa this year is predicting a positive rate of GDP growth and the growing middle markets are more and more coming into the banking system.

“As the needs of this group develop, the broader financial services and products, provided by Nedbank, Old Mutual and Mutual and Federal in a coordinated and planned way positions us well to capture a greater share of this market,” Roberts adds.—I-Net Bridge