Mail & Guardian
Mail & Guardian

Nedbank says third-quarter income gains on increase in lending

Nedbank.
Nedbank.

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