The financial services group also saw its diluted headline earnings per share increase by 13 per cent to 2 066 cents.
The group said the growth was driven by an increase in net interest income, improvements in impairments and growth in non-interest revenue, particularly in the second half.
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[DATA NED:Nedbank Group Limited’s] headline earnings included associate income from its shareholding in Ecobank Transnational Incorporated effective for the last quarter of the year.
“Diluted headline earnings per share increased 13 per cent to 2 066 cents from 1 829 cents in 2013 and diluted earnings per share increased 12.5 per cent to 2 049 cents from 1 822 cents in 2013,” added the group in a statement.
“The group’s balance sheet is well positioned. Our Basel III common-equity tier 1 (CET1) ratio of 11.6 per cent (2013: 12.5 per cent) after acquiring approximately 20 per cent of ETI is above the mid-point of our Basel III 2019 internal target range,” said the company.
“Funding and liquidity levels remained sound, with statutory liquid assets and cash reserves increasing 18.5 per cent to 82.6 billion rand compared to 69.7 billion in 2013.”
The group said it met the 60 per cent minimum liquidity coverage ratio requirement on 1 January 2015.
Nedbank said it made a number of important changes during 2014 to position itself for continued growth into the future.
“Our strong internal talent pipelines enabled us to implement a successful succession process in a number of executive roles,” said the group.
“We also announced the creation of an integrated corporate and investment bank to enable better client service and unlock additional revenue growth opportunities. Our pan-African banking network strategy was strengthened through the investment of 5.9 billion rand to secure a shareholding of approximately 20 per cent in our longstanding alliance partner, Ecobank.”
The group’s banking segment operating environment in 2014 remained challenging for consumers, with global markets reflecting a mixed performance, and the local economy remained under pressure from strike action and electricity supply constraints.