Nedbank increased first-quarter net interest income by 21,9% to R3,87-billion but said it expected slower first-half earnings growth.
Shares in Nedbank stood 1,59% down at R111,50 by 7.18am GMT on Wednesday, underperforming the JSE Securities Exchange’s blue chip Top-40 index which was 0,27% weaker.
Nedbank said the banking environment is becoming increasingly challenging due to interest rate increases and expected higher levels of credit stress and although the group expects positive earnings growth in the first half, it will be at lower levels than originally expected.
”These pressures on the economy, together with heightened market volatility, have increased forecast risk. The group still expects to show positive earnings growth for the first half of 2008, but growth is expected to be at lower levels than originally anticipated,” Nedbank said in a statement.
Nedbank is majority-owned by insurer Old Mutual. – Reuters 2008