JOHANNESBURG, Aug. 11 -– Nedbank Group delivered an excellent financial performance for the six months ended 30 June 2022 as headline earnings increased by 27% to R6,7bn, driven by strong revenue growth, a flat credit loss ratio, an improved performance from associate ETI and a well-managed expense base.
Nedbank chief executive Mike Brown said the group’s performance in the first half of 2022 reflects improvements across all key metrics in a complex and difficult operating environment.
“The group’s return on equity (ROE) increased to 13,6% (June 2021: 11,7%), and all frontline business units generated ROEs above the group’s cost of equity (COE),” Brown said.
The group’s balance sheet remained very strong. CET1 and tier 1 capital ratios of 13,5% and 15,1% respectively increased from the 31 December 2021 levels and are well above SARB minimum regulatory requirements.
The average Liquidity Coverage Ratio (LCR) for the second quarter of 144% and a Net Stable Funding Ratio (NSFR) of 119% were well above the 100% regulatory minimum.
“On the back of strong earnings growth and robust capital and liquidity positions, the group declared an interim dividend of 783 cents, up by 81% year on year and back above the 2019 pre-Covid-19 interim dividend,” Brown said.
HE of the Nedbank Africa Regions (NAR) business increased by more than 100% to R574m from R182m for the period, delivering an ROE of 15,9%, above the group’s COE.
This increase is attributable to improved performance in the Southern African Development Community (SADC) operations and a continued turnaround of our Ecobank Transnational Incorporated (ETI) associate investment.
Outside South Africa, Nedbank has operations in five countries in
SADC, through subsidiaries and banks in Eswatini, Lesotho, Mozambique, Namibia and Zimbabwe, with representative offices in Kenya (Nairobi) and Ghana (Accra).
