Nedbank posts solid first-quarter results

Nedbank, South Africa’s fourth-largest bank, reported a 16% jump in non-interest revenue in the first quarter, as part of its strategy to lessen its reliance on lending and improve bad debts.

In a trading update on Friday, the bank outlined solid growth in other business lines, but left its full-year outlook unchanged.

Nedbank, like its rivals, was hit hard by bad debts in 2009, after a recession slashed more than a million jobs and left many consumers with ballooning household debt.

Nedbank has since outlined a strategy to turnaround its retail unit, lower bad debts and increase the money it makes from areas other than loans.

Nedbank said its non-interest revenue rose 16,4% to R3,5-billion in the three months to end-March, compared with R3-billion a year earlier.

Growth in clients and higher transactions in electronic banking helped its fees and commissions, it said.

Net interest income, a measure of earnings from lending, rose by nearly 6% to R4,3-billion.

It did not give numbers for net profit or headline earnings, the main measure of profit in South Africa.

The bank said its credit loss ratio, a measure of bad debts, improved to 1,15% of its total loan book, compared with 1,46% a year earlier.

Nedbank, which is majority owned by insurance firm Old Mutual, is the South African bank that HSBC dropped a takeover bid for last year.

Shares of Nedbank are up about 8% so far this year, outperforming a slight decline in the top-40 index of blue-chips. - Reuters



blog comments powered by Disqus

Client Media Releases

Narrowing the intention-behaviour gap
Imperial reports flat revenue
MTN's school connectivity programme reaches Namaqualand
Rosebank College initiates Graduate Empowerment Programme
Oxbridge Academy partners with ADvTECH Group
Why future success belongs to the first movers...
Ipsos pre-election forecasting on the mark nationally
Office 365 a one-stop-shop for e-mail compliance