Nedbank Group reports 8pc rise in half year profit
SOUTH Africa’s Nedbank Group reported an eight percent rise in half-year profit on Tuesday, supported by lower impairment charges and solid growth in non-interest revenue (NIR).
Nedbank upwardly revised its full-year forecast for NIR and new chief executive, Jason Quinn, told Reuters the bank should benefit as South Africa’s new national unity government has spurred cautious optimism in financial markets and could see companies spending meaningfully again.
“The national agenda on infrastructure is clear and we are an infrastructure player,” Quinn, who became CEO in May, said in an interview. “Companies are geared to take on some projects and taking on some debt.”
Nedbank, South Africa’s fourth biggest bank by assets, said headline earnings rose to 7,9 billion rand ($427,2 million) in the six months ended June 30.
NIR increased by seven percent to 14,4 billion rand, slightly ahead of the group’s full-year guidance of above mid-single-digit growth. This was thanks to good growth in commission and fees, a strong trading performance and higher equity investment income, the bank said.
Nedbank now expects NIR growth for 2024 to be in the upper-single digits, buoyed by ongoing corporate deals and the acquisition of fleet management business Eqstra.
CEO Quinn is betting on an improving South African economy as inflationary pressures ease and the central bank is expected to start cutting interest rates in September for the first time since July 2020. —Reuters
