Nedbank profit beats expectations

Nedbank Group, the South African lender controlled by Old Mutual, reported full-year profit that beat analyst estimates as revenue advanced and bad debts increased at a slower pace.

Net income rose to R8.64-billion ($789 million), from R7.45-billion in 2012, the Johannesburg-based company said in a statement on Monday. Earnings per share excluding one-time items climbed 15% to 18.84 rand, beating the R17.89 mean estimate of 15 analysts surveyed by Bloomberg.

The increase in profit was driven by "good revenue growth, impairments increasing at a slower rate than net interest income and disciplined expense management," Nedbank said in the statement.

Nedbank, South Africa’s fourth-largest lender by assets, started expanding outside the country’s biggest cities four years ago to win more clients in the low-income market. The bank expects advances to grow by 5% to 9% this year, while the credit-loss ratio should be within the 80 to 120 basis points range.

The lender's full-year dividend climbed 19% to R8.95 rand. Nedbank said it expects net interest revenue, excluding fair-value adjustments, to rise 5% to 9% this year. – Bloomberg

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Advertising

The recovered remain cautious

People who have survived Covid-19 are not going through life carefree. They are still taking all the preventative measures

Lockdown relief scheme payouts to employees tops R14-billion

Now employers and employees can apply to the Unemployment Insurance Fund for relief scheme payments
Advertising

Press Releases

Covid-19 and Frontline Workers

Who is caring for the healthcare workers? 'Working together is how we are going to get through this. It’s not just a marathon, it’s a relay'.

PPS webinar Part 2: Small business, big risk

The risks that businesses face and how they can be dealt with are something all business owners should be well acquainted with

Call for applications for the position of GCRO executive director

The Gauteng City-Region Observatory is seeking to appoint a high-calibre researcher and manager to be the executive director and to lead it

DriveRisk stays safe with high-tech thermal camera solution

Itec Evolve installed the screening device within a few days to help the driver behaviour company become compliant with health and safety regulations

Senwes launches Agri Value Chain Food Umbrella

South African farmers can now help to feed the needy by donating part of their bumper maize crop to delivery number 418668

Ethics and internal financial controls add value to the public sector

National treasury is rolling out accounting technician training programmes to upskill those who work in its finance units in public sector accounting principles

Lessons from South Korea for Africa’s development

'Leaders can push people through, through their vision and inspiration, based on their exemplary actions'

Old Mutual announces digital AGM

An ambitious plan to create Africa’s biggest digital classroom is intended to address one of the continent’s biggest challenges — access to education

The best local and international journalism

handpicked and in your inbox every weekday