Nedbank posted lower full-year profit as corporate and individual clients struggle to pay back loans, and gave a cautious outlook about any improvement in bad debts.
Nedbank, majority-owned by insurer Old Mutual, said on Thursday diluted headline earnings per share fell 29,8% to 983 cents, in line with its forecast of a 25% to 35% drop.
Like its peers, Nedbank has been hit by rising bad debts due to consumers struggling to pay back loans as Africa’s biggest economy slowly gets back on its feet after a recession.
Nedbank said it remained cautious about impairments because it was uncertain how the current economic challenges, including job losses and high debt levels, could further affect consumers.
Rival bank Absa forecast muted growth last Tuesday after posting lower 2009 profit. — Reuters