Nedbank boosts customer numbers

Nedbank says that it has grown its client base to above 6.4 million, up 10% from 5.9 million since June 2012.

On Tuesday (6 August 2013) the bank reported diluted headline earnings per share up 12.6% to 831 cents for the six months period ended June 2013. Headline earnings grew 13.3% to R3.91 billion.

The group declared an interim dividend per share to 390 cents, up 14.7%.

Nedbank said that clients using digital increased 80% cumulatively to 1.33 million, while new outlets were up 46% and ATMs up 81% since 2009.

Since 2010, Nedbank said it has invested R521 million in 224 new outlets, along with 142 closures, and 37 refurbishments. The group also installed 1,248 new ATMs, but saw 249 closures.

Looking ahead to 2014, the bank aims to spend R400 million on 340 new outlets, and 1,000 new ATMs.

The bank pointed to accelerated delivery in innovation during the past 18 months, including launching PocketPOS and MyeBills.

“In a tougher economic environment Nedbank Group delivered a solid performance in the first six months of 2013. Strong NIR growth and disciplined expense management resulted in the NIR-to-expense ratio target of over 85% being exceeded for the first time and the return on equity increasing,” said Mike Brown, Nedbank’s CEO.

“Despite the more challenging economic environment and increasing consumer credit stress that has led to higher retail banking impairments, Nedbank Group is targeting, for the full year, growth in diluted headline earnings per share to meet its medium-to-long-term target,” he said.

Last month (30 July), Absa reported a 12% drop in banking customers in reporting interim results for the period June 2013, to 9.4 million.

Absa said its outlets declined marginally to 864, from 874 in 2012, while total ATMs grew to 9,630, from 9,547 before.

Internet banking customers grew to 1.203 million, from 1.176 million in 2012, and from 150,000 in 2009, while mobile phone banking customers improved to 4.483 million, from 4.237 million before.

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