The investment, savings, life assurance, asset management, banking, property and casualty insurance provider saw its NII to 5.5 billion rand in the 2014 quarter from 5.1 billion rand in the first quarter of 2013.
“Globally the first quarter of the year was marked by macro-economic concerns in many emerging markets. In South Africa, the economy was impacted by protracted and ongoing strikes in the platinum mining sector,” said [DATA NED:Nedbank] chief executive, Mike Brown.
“Against these headwinds, we continue to make good progress in our strategic focus areas. Net interest income growth at 8.7 per cent was solid. We have seen a pleasing improvement in the credit loss ratio following the risk management actions undertaken in prior years.”
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The credit loss ratio showed improvement at 0.89 per cent from 1.22 per cent for the comparative period in 2013 while the net interest margin decreased slightly to 3.57 per cent in 2014 from 3.62 per cent in 2013.
Non-interest revenue (NIR) increased by 2.7 per cent to 4.5 billion rand in the first quarter of 2014 from 4.3 billion in the 2013 first quarter.
Total advances rose 14.9 per cent, annualised, and deposits increased by 9.8 per cent with strong growth seen in call, term and cash management deposits.
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“The economic outlook for the balance of the year remains challenging. The group currently anticipates interest rates to increase by a further 50 basis points and that gross domestic product (GDP) will grow by 2.5 per cent in 2014,” Nedbank said.
“Our financial guidance for 2014, as communicated at the 2013 Annual Results presentation, including for organic growth in diluted headline earnings per share to be greater than the growth in nominal GDP, remains unchanged.”