Nedbank says third-quarter income gains on increase in lending

Nebank is seeking to use its cheaper bank products to attract lower-income earners. (Gallo)

Nebank is seeking to use its cheaper bank products to attract lower-income earners. (Gallo)

Nedbank Group, the South Africa bank controlled by Old Mutual, said income in the first nine months gained as customers boosted lending.

Net interest income rose 8.3% to R15.72-billion from R14.52-billion a year earlier, the Johannesburg-based bank said on Monday. Non-interest revenue climbed 14% to R14.2-billion, while total loan advances rose 9.7% to R566-billion. The credit-loss ratio fell to 1.15% from 1.31% in June.

"Proactive credit risk management strategies contributed to an improvement in the credit-loss ratio," Mike Brown, chief executive of Nedbank, said.

Nedbank, South Africa's fourth-largest lender by assets, is seeking to attract low-income earners with more affordable banking products.
It's winning a bigger share of South Africa's consumer market, with client numbers gaining 10% in the first half to 6.4-million.

Nedbank gained 12% this year, beating the average 7.2% increase on the six-member FTSE/JSE Africa Banks Index. – Bloomberg

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