Nedbank shows solid growth in Q3 - CNBC Africa

Nedbank shows solid growth in Q3

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The bank holding company saw net interest income increase to 15.7 billion rand for the nine months ending 30 September 2013 from 14.5 billion rand in the third quarter of 2012.

“In a tough and volatile economic environment Nedbank performed solidly in the third quarter. Our focus on building the franchise continues to underpin non-interest revenue growth and proactive credit risk management strategies contributed to an improvement in the credit loss ratio,” said Nedbank’s chief executive Mike Brown.

“We continue to make satisfactory progress towards meeting our diluted headline earnings per share growth target for 2013.”

Non-interest revenue increased by 14.2 per cent from 12.4 billion rand in the third quarter of 2012 to 14.1 billion rand in 2013 and fair-value adjustments were a positive 110 million rand.

Total advances grew 9.7 per cent, annualised, to 566 billion rand and fee and commission’s growth was at 14 per cent.

Insurance income grew 14.9 per cent, trading income grew 6.2 per cent and deposits increased 9.4 per cent, annualised, to 590 billion rand.

“The group’s forecast for gross domestic product (GDP) growth of 2.0 per cent and an average consumer price index (CPI) of 5.9 per cent for 2013 is reflective of continued pressures in the global and domestic economy,” said Brown.

“The group’s financial guidance to meet its medium-to-long-term diluted headline earning per share growth target, being greater than or equal to GDP plus CPI plus 5 per cent, in 2013 remains unchanged.”

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