Nedbank adds 529,000 customers
Financial services group, Nedbank says it grew its retail customer segment by 529,000 or 9%, to 6.4 million during the period ended December 2013, while total clients advanced 10% to 6.7 million.
Headline earnings increased 15.9% to 8.67 billion rand, while headline earnings per share increased 15 percent to R18.29, the bank said.
Earlier this month (11 February), Absa reported a loss of 940,000 clients in its retail banking arm.
In announcing its financial results for the year ended, December 2013, Absa pointed to a decline in transactional customer numbers from 9.78 million to 8.84 million, due to the closure of 800,000 social grant-related accounts. The bank had 12.1 million customers in 2011.
Both Absa and Nedbank trail Standard Bank by some margin, with the latter financial services group boasting about 11 million retail banking customers in South Africa, up to the end of June 2013.
FNB, meanwhile, in results for the financial year ended June 2013, reported an increase in “active accounts” of 1.1 million – though this is not reflective of the bank’s total customers.
Nedbank on Monday (24 February) announced a 19% increase in full-year dividend per share to 895 cents.
“The number of clients with two or more Nedbank products also increased by 9,0%, notwithstanding a 106,000 reduction in Personal loans clients, which was the result of the
decision to derisk the business,” it said.
Clients using digital increased 103% cumulatively to 1.64 million, it said.
Nedbank noted that it rolled out 28 ‘branch of the future’ stores, along with 334 new ATMs taking its total to 3,382.
Distribution growth included five net new outlets, while 27 branches and one inretailer outlet were refurbished in line with the branch of the Future design principles.
The bank plans “an accelerated rollout” to invest R2.1 billion over the next five years on its branches, hoping to save 15% in floor space. “This will enable 75% of the client base to experience this enhanced branch experience within three years,” it said.
The group aims to have delivered 340 new outlets, and 1,000 ATMs by the end of 2014, having invested R667 million in 255 new outlets, and 1,553 ATM’s already over the past three years. During that period, the bank has seen 164branch closures, 42 refurbishments, and 354 ATM closures.
For the six months period ended June 2013, Nedbank said that clients using digital had increased 80% cumulatively to 1.33 million.
During the previous interim reporting period, Nedbank said it has invested R521 million in 224 new outlets, along with 142 closures, and 37 refurbishments since 2010. The group also installed 1,248 new ATMs, but saw 249 closures.
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