Skip to main content

Nedbank reports optimistic results

By Stanley Okombo

The Nedbank group delivered positive performance for the 12 months ended 31 December 2013 but anticipates a tough 2014.
A Nedbank ATM. PHOTO: Sandton City
Headline earnings increased 15.9 per cent to 8.6 million rand from 2012: 7.4 million rand in 2012, and diluted headline earnings per share were also up 15 per cent to 1,829 cents from 1,590 cents in the previous year.
“Nedbank's growing franchise, together with the progress made with our strategic focus areas,  has enabled the group once again to meet its target for growth in diluted headline earnings per share,” Nedbank 0.49% said in a statement.
“In a challenging environment the group delivered a strong performance across a broad front, which resulted in improvements in both returns on assets and returns on equity.”
The Nedbank group is a South African-based financial services provider with clients in Africa, Europe, the Americas and Asia. 
Non-interest revenue grew 11.8 per cent to 19.3 million rand from 17.3 million rand in 2012, from a number of factors, including commission and fee income, which increased strongly by 11.8 per cent to 14 million rand from 12.5 million rand in 2012.
Insurance income growth of 13.7 per cent to 1.9 million rand from 1.6 million rand, and trading income, which increased 4.1 per cent to 2.5 million rand from 2.4 million rand, also contributed to the growth in non-interest revenue.
Operating expenses however grew 9.2 per cent to 22.3 million rand from 20.4 million rand in 2012. Profit from operations was however recorded at 9.4 million rand from 8.6 million rand. Nedbank’s full-year dividend per share was up 19 per cent to 895 cents.
“The group benefited from the diversified earnings streams from our clusters. Stronger earnings growth rates were achieved by our wholesale clusters, while earnings growth in Nedbank Retail and Nedbank Business Banking was impacted by higher impairments and continued investment for growth,” the group explained.
Year-end headline earnings for Nedbank Capital increased from 1.4 million rand in 2012 to 1.7 million rand and Nedbank Corporate earnings were recorded at 2.2 million rand from 1.8 million rand in 2012.
Nedbank Business Banking and Nedbank Retail however declined in earnings, but the remainder of the group’s segments continued sustained growth.
“Growth in household credit demand is unlikely to improve in 2014 while employment conditions remain poor, real income constrained and consumer debt levels high,” said Nedbank.
“Growth across most retail advances categories will continue to be muted and consumer credit risks are likely to increase. The rate and extent of further interest rate increases will impact the ability of consumers to service their debt.”

Comments

Post a Comment

Popular posts from this blog

Kenya Economic Outlook

Economic growth is estimated at 4.9% in 2013 and is projected to accelerate to 5.7% in 2014.   Having witnessed drastic currency depreciation and rapid inflation in 2011, the economy experienced stability for both indicators in 2012 and 2013 with inflation dropping to a single digit. This stability is expected to continue in 2014. Kenya’s economy continued to recover in 2013 from the slowdown experienced in 2011. Real GDP growth in the year accelerated to 5.2%, 4.3% and 4.6% in the first three quarters of 2013 primarily driven by financial intermediation, tourism, construction and agriculture. Real GDP growth is estimated at 4.9% and 5.7% in 2013 and 2014 respectively. Similarly CPI inflation is expected to remain single digit over the same period. The economy’s short- to medium-term forecast is for sustained and rising growth based on: increased investor and business confidence in the wake of peaceful March 2013 elections; increased rainfall; a stable macroecon...
Post a Comment
Read more

AFRICA COUGHT A FLU

THE EBOLA VIRUS What everyone who wants to come to Africa be it for business,leisure or any of those a thousand and one reasons is to acquire him/herself knowledge about the Ebola virus. According to the WHO & CDC Ebola is,"  Ebola virus disease (EVD), formerly known as Ebola haemorrhagic fever, is a severe, often fatal illness in humans." Key facts The virus is transmitted to people from wild animals and spreads in the human population through human-to-human transmission. The average EVD case fatality rate is around 50%. Case fatality rates have varied from 25% to 90% in past outbreaks. The first EVD outbreaks occurred in remote villages in Central Africa, near tropical rainforests, but the most recent outbreak in west Africa has involved major urban as well as rural areas. Community engagement is key to successfully controlling outbreaks. Good outbreak control relies on applying a package of interventions, namely case management, surveillance and contact tr...
Post a Comment
Read more

Why the Akashas are wanted in US for trial

The tumble of the Akasha dynasty began on November 11, 2014, when Kenyan and US agents burst into the palatial homes of the drug lord's sons in Nyali and captured them. The sons of slain drug lord Ibrahim Akasha, Baktash and Ibrahim, were detained alongside Indian felon Vijaygiri "Vicky" Goswami and Gulam Hussein of Pakistan. They spent close to six months seeking freedom on bond and two years fighting extradition to the US. Also detained was Vijay's girlfriend Mamata Kulkarni, a former Bollywood actress. She was freed without charges and returned to India. Events leading to the arrest were dramatic. A day earlier, the entire anti-narcotics unit in the Coast was transferred from the region and the skeleton that remained was not even aware that US agents and Kenyan colleagues from Nairobi were swarming on the Nyali residences to detain the suspects. It became clear within 24 hours that the four men had been arrested on the strengths of an Interpol Red Notice and i...
Post a Comment
Read more