<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5743737954001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Nedbank’s share price was slightly up in early trading.</p>


Nedbank CEO Mike Brown talks life after Old Mutual split

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5743737950001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Nedbank’s share price was slightly up in early trading.</p>


Nedbank’s view on land expropriation

<div style="display: block; position: relative; max-width: 730px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5738563509001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>The Nedbank Old Mutual budget speech competition has been running since 1972 and is designed to motivate and incentivise the country&#8217;s most talented students in economic and finance to contribute to critical debate on critical issues. In its 46th year, CNBC Africa’s Karabo Letlhatlha sat down with Joel Baepi, Director of Governance, Regulatory and Corporate Affairs at Old Mutual about the growth and impact of competition on young economists.</p>


Motivating SA’s talented students in economics and finance

<p>Dear Mr Cyril Ramaphosa</p>
<p>Congratulations on your election as the 14th President of the African National Congress.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-19993 size-full" src="http://cnbc.africa/wp-content/uploads/2017/01/mike_brown_-__nedbank.jpg" alt="Nedbank shows solid growth in Q3" width="430" height="350" /></p>
<p>You have been elected at a vital time for both the future of the ANC and South Africa. Your election presents an opportunity to renew confidence in South Africa, both internally and externally.</p>
<p>The Nedbank team looks forward to engaging with you, and addressing the pressing needs facing our society and meeting the legitimate aspirations of all South Africans.</p>
<p>As you know, there are multiple challenges facing the country. Like many South Africans, we’re concerned about the governance failures in critical public institutions. We also recognise that there have been failures in the private sector. In order to deal with both, we need ethical leadership and strong oversight institutions, including the criminal justice system. We also need active news media able to expose wrongdoing. It is particularly urgent that the state-owned enterprises (SOEs) are put on a stable footing. The enormous liabilities that the SOEs are burdened with pose a risk to the entire economy. It is critical that management of SOEs, particularly Eskom, be stabilised if we are to shore up the fiscal position of the state as a whole.</p>
<p>The recent Medium-Term Budget Policy Statement was worrying, as it set out the outcomes of current policies on government’s finances. This outlook led directly to the further sovereign credit ratings downgrades we saw in November. It is crucial that the 2018 February Budget Speech provides credible solutions to our fiscal challenges and, in so doing, helps us to retain our last investment grade rating from Moody’s. We are concerned that the proposed free tertiary education will add further pressure on the country’s already significant financial challenges, especially when no financial plan has been provided for it.</p>
<p>Beyond these immediate priorities, it is important that we have stable and rational policies, creating an environment that encourages growth for businesses and individuals. South Africa has the potential to provide for all its citizens but, too often, this capacity has been swamped by institutional dysfunction and policy confusion. This makes investment more difficult across the economy, as we cannot rely on institutions to do what they are meant to do, or understand the outlook for regulations affecting the private sector. As a result, transaction costs go up, return on investment declines, and less investment takes place. Job creation and economic growth suffer as a result.</p>
<p>The costs of investment have also risen following downgrades of South Africa’s credit rating, which resulted in automatic downgrades for the banks as well, given our ratings are capped at the sovereign ceiling, raising the cost of borrowing for all South Africans. As you’re aware, Moody’s, which is the only major agency that currently rates South Africa’s local currency debt<br />
at investment grade, has put South Africa on review for downgrade. Should Moody’s follow through with a downgrade, our government bonds will be excluded from major international bond indices, potentially leading to significant selling. This will increase the cost of funding for government and force higher spending on interest payments instead of important social objectives.</p>
<p>It is urgent that we demonstrate our commitment to strong financial management to retain that investment grade. The integrity of spending decisions must be restored across the state and wasteful expenditure reduced. Interventions to drive economic growth and, with it, government revenue will also contribute to closing the budget deficit. There is much goodwill both locally and internationally to assist in the effort.</p>
<p>We also urge you to address the escalating levels of corruption that have permeated South Africa. Evidence of this has become overwhelming and civil society will be looking to you for immediate solutions. We need an independent judicial investigation into state capture as a matter of priority. Without this, it is difficult to envision a prosperous and growing South Africa that will benefit all.</p>
<p>We understand the challenges you face are substantial. The solutions cannot be achieved overnight. But solutions are possible with ethical and inspirational leadership. We believe that business must be a major part of any solution, as must government, labour, civil society, and other role players. Nedbank is committed to playing a key role in developing all sectors of the SA economy and working alongside leadership who have the best interests of South Africa at heart. I am at your disposal should you wish to engage on any of the points in this letter and how Nedbank can play its part in building the South Africa we all wish for.</p>
<p>Yours sincerely<br />
Mike Brown, Nedbank Group Chief Executive</p>


Nedbank Chief Executive’s Open Letter To The New ANC President, Ramaphosa

<p>Anglo-South African financial services group Old Mutual said on Wednesday it will retain a 19.9 percent strategic minority shareholding in Nedbank after the parent company’s planned split.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-18409 size-full" src="http://cnbc.africa/wp-content/uploads/2017/01/nedbank_125.jpg" alt="S.Africa’s major banks perform well despite industry headwinds" width="677" height="450" /></p>
<p data-reactid="40">Old Mutual, whose primary share listing is on the London Stock Exchange, is planning to break itself up into four parts as it says regulatory changes make the company too complex to run in its current form.</p>
<p data-reactid="41">The shareholding in Nedbank, which is a majority-owned banking subsidiary of Old Mutual plc, will have a primary listing on the JSE and a secondary listing on the London Stock Exchange, the companies said in a statement.</p>
<div class="Attribution_attribution_o4ojT" data-reactid="42">
<p class="Attribution_content_27_rw" data-reactid="43">Reporting by Tanisha Heiberg; Editing by Joe Brock</p>
</div>


Old Mutual to retain 20% of South Africa’s Nedbank after split

<div style="display: block; position: relative; max-width: 640px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5547847288001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>According to the latest findings of the Nedbank Small Business IndexTM, small-business confidence in South Africa has decreased dramatically in the first half of 2017 because of the technical recession, political and economic uncertainty.</p>


SA’s small business confidence at four-year low

<p data-reactid="35">A South African court denied on Friday an application by former finance minister Pravin Gordhan for an order that would block the ministry from any involvement in a dispute between banks and the Gupta family, businessmen accused of influence peddling.</p>
<p data-reactid="36">Standard Bank, Nedbank, FirstRand and Barclays Africa last year closed the bank accounts of companies controlled by the Gupta family following accusations they had undue influence over President Jacob Zuma and the issuing of government contracts.</p>
<p data-reactid="37">Gupta-owned companies asked Gordhan, an outspoken critic of Zuma and the Gupta family, to intervene and force the banks to reopen their accounts, prompting him to ask the High Court to declare it was outside of the remit of his ministry.</p>
<p data-reactid="38">A Pretoria high court called Gordhan&#8217;s application unnecessary, local media reported.</p>
<p data-reactid="39">Zuma and the Guptas have denied any wrongdoing.</p>
<div data-reactid="40"></div>
<div class="Attribution_attribution_o4ojT" data-reactid="41">
<p class="Attribution_content_27_rw" data-reactid="42">Reporting by TJ Strydom; Writing by Joe Brock; Editing by Ed Cropley</p>
</div>


South African court denies Gordhan protection in Gupta, bank dispute

<div style="display: block; position: relative; max-width: 640px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5528782548001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Nedbank reported its interim results saying that it grew its interest income 12.5 per cent to R37 billion and its fee income 18 per cent to R24 billion.</p>


Nedbank CEO Mike Brown talks earnings, company’s outlook

<p data-reactid="38">Nedbank reported a 3.7 percent fall in mid-year profit on Wednesday as a weak showing at Ecobank weighed on results from South Africa&#8217;s No.4 lender by market value.</p>
<p data-reactid="39">Nedbank owns about 16 percent of Ecobank, whose operations across West Africa have been hurt by lower commodity prices and unfavourable currency swings.</p>
<p data-reactid="40">Diluted headline earnings per share fell to 10.78 rand for the six months to June 30 from 11.19 rand a year earlier, said Nedbank, part of Anglo-South African financial conglomerate Old Mutual.</p>
<p data-reactid="41">Headline EPS strips out certain one-off items and is the main profit measure in South Africa.</p>
<p data-reactid="42">Excluding a 1.2 billion rand ($90.70 million) loss from Ecobank, Nedbank would have managed a 6 percent increase in earnings.</p>
<p data-reactid="43">&#8220;(Ecobank) remains a strategic investment for Nedbank, providing our clients with a pan-African transactional banking network across 39 countries and access to deal flow in Central and West Africa,&#8221; Nedbank said. &#8220;While risks remain, we believe the outlook for Ecobank is improving.&#8221;</p>
<p data-reactid="44">($1 = 13.2300 rand)</p>
<div class="Attribution_attribution_o4ojT" data-reactid="45">
<p class="Attribution_content_27_rw" data-reactid="46">Reporting by Tiisetso Motsoeneng; editing by Jason Neely</p>
</div>


South Africa’s Nedbank H1 profit falls nearly 4% on Ecobank

<div style="display: block; position: relative; max-width: 640px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5507535065001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>CNBC Africa spoke to Thomson Reuters&#8217; economist of the year winners Dr Johannes Jordaan, Chief Economist at Economic Modelling Solutions and Dennis Dykes, Chief Economist at Nedbank.</p>


Johannes Jordaan, Dennis Dykes tops Reuters SA economist poll

<div style="display: block; position: relative; max-width: 640px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5480046608001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
<p>Nicky Weimar, Senior Economist at Nedbank, recently spoke at the SAPOA Convention on South Africa&#8217;s current economic climate and the key reasons behind the country&#8217;s disappearing growth rate.</p>


Nedbank

Nedbank CEO Mike Brown talks life after Old Mutual split

Nedbank’s view on land expropriation

Motivating SA’s talented students in economics and finance

Nedbank Chief Executive’s Open Letter To The New ANC President, Ramaphosa

Old Mutual to retain 20% of South Africa’s Nedbank after split

SA’s small business confidence at four-year low

South African court denies Gordhan protection in Gupta, bank dispute

Nedbank CEO Mike Brown talks earnings, company’s outlook

South Africa’s Nedbank H1 profit falls nearly 4% on Ecobank

Johannes Jordaan, Dennis Dykes tops Reuters SA economist poll

What’s behind SA’s economic slump?

News Tips

Advertise With Us

Nedbank

Nedbank CEO Mike Brown talks life after Old Mutual split

Nedbank’s view on land expropriation

Motivating SA’s talented students in economics and finance

Nedbank Chief Executive’s Open Letter To The New ANC President, Ramaphosa

Old Mutual to retain 20% of South Africa’s Nedbank after split

SA’s small business confidence at four-year low

South African court denies Gordhan protection in Gupta, bank dispute

Nedbank CEO Mike Brown talks earnings, company’s outlook

South Africa’s Nedbank H1 profit falls nearly 4% on Ecobank

Johannes Jordaan, Dennis Dykes tops Reuters SA economist poll

What’s behind SA’s economic slump?

News Tips

Advertise With Us

Newsletters