Nedbank CEO Mike Brown talks life after Old Mutual split

Nedbank's share price started off slightly up in early trading as the financial institution unveiled its full-year results. South Africa's fourth-largest lender by value intends to enhance shareholder value by targeting a return on equity excluding goodwill for 2020 of over 18% and a cost-to-income ratio of 53% or less. Nedbank CEO, Mike Brown, recently appeared on CNBC Africa where he discussed the bank's outlook following the split from its former London parent, Old Mutual. With Old Mutual set to return to the Johannesburg Stock Exchange later this year, anticipation is high. However, Brown clarified that the separation does not entail a complete break. Old Mutual's ownership of Nedbank is slated to drop from 54% to 19.9%, likening the change to 'our sister becoming our cousin.' Emphasizing the ongoing collaboration between the entities, Brown noted that Old Mutual will not sell any Nedbank shares but instead distribute them to its shareholders through an unbundling process. The meticulous strategy ensures a seamless transition and has no bearing on Nedbank's operations, staff, or clients. Notably, the absence of integrated technology systems and branding between the two entities eases the transition, allowing for continued cooperation without a significant separation effort.