Nedbank Group FY Headline Earnings Up 2.8%

Nedbank Group Limited, the majority-owned South African banking subsidiary of Old Mutual plc (ODMTY.PK,OML.L), reported that its headline earnings for the year ended 31 December 2017 were R11.8 billion, up 2.8%, reflect a good performance from managed operations, with headline earnings growth of 7.8% and a ROE (excluding goodwill) of 18.1%.

Slower revenue growth was offset by reduced impairments and good cost management, while share of the loss from associate ETI following its fourth-quarter of 2016 results decreased in the second half of the year as the ETI business returned to profitability.

Net interest income increased 4.5% to R 27.624 billion, ahead of average interest-earning banking asset growth of 2.2%, adjusted for the removal of the liquid-asset portfolio.

Non-interest revenue grew 2.4% to R 24.063 billion reflects the impact of weak business and consumer confidence levels.

"Reflecting on the impact on the group of the greater levels of business and consumer confidence evident in the early part of 2018, an improving economic outlook, ongoing delivery on our strategy and ETI's returning to sustained levels of profitability, our guidance for growth in diluted headline earnings per share for 2018 is to be in line with our medium-to-long-term target of greater than or equal to GDP plus CPI plus 5%," the company said.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT