Nedbank said it produced a solid financial performance for the year ended December 2017, in a domestic macro and political environment that has proved volatile and challenging.<\/p>\n
Headline earnings, including losses in associate income of R744 million from its associate bank Ecobank Transnational Incorporated (ETI), increased 2.8% to R11.8 billion.<\/p>\n
This translated into an increase in diluted headline earnings per share (DHEPS) of 2.4% to R24.06 and an increase in HEPS of 2.2% to R24.52.<\/p>\n
“Our managed operations produced headline earnings growth of 7.8% to R12.762 billion, with slower-than-expected revenue growth more than offset by reduced impairments and good cost management,” the lender said.<\/p>\n
Net interest income, a key measure of lending profitability, was 4.5% at R27.6 billion.<\/p>\n
“On the back of solid earnings growth in managed operations and a strong capital position, a final dividend of 675 cents was declared, an increase of 7.1%. The total dividend per share increased 7.1% to 1 285 cents,” the bank said.<\/p>\n
Nedbank said it increased its digitally active and enabled client base as it launched new digital innovations, with the new Nedbank Money app having been downloaded more than 300,000 times since its launch in November 2017.<\/p>\n
“We supported our clients by advancing R153 billion of new loans in 2017,” it said.<\/p>\n
Looking forward, Mike Brown, the bank’s chief executive said that 2018 started with positive changes to the country’s political and socioeconomic landscape and brought renewed prospects for higher levels of inclusive growth.<\/p>\n
“Nedbank is acutely aware of the increased responsibility that we, and indeed all businesses, have to work alongside government, labour and civil society to play our part in improving the lives of all South Africans.”<\/p>\n
“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%,” Brown said.<\/p>\n