South Africa’s Nedbank Group (NEDJ.J), opens new tab said on Tuesday its half-year headline earnings were largely flat, outperforming the lender’s expectations at the start of the year, as income growth offset a higher impairment charge.
For the six months to June 30, headline earnings edged up to 8.4 billion rand ($509 million) from 8.3 billion a year earlier.
Net interest income grew 4% to 22 billion rand, while non-interest income rose by 10% to 16.2 billion rand, driven by strong growth in commission and fees and underlying insurance activity.
The group’s impairment charge increased 26% to 4.8 billion rand, driven by a 13% increase in personal and private banking, with the corporate and business banking units rising off a low base.
Credit loss ratio – a measure of bad loans as a proportion of total loans – rose to 95 basis points from 81 basis points last year.
Interim dividend of 10.52 rand per share.
($1 = 16.5022 rand)
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Reporting by Nqobile Dludla; Editing by Tom Hogue, Kirsten Donovan
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