by Ncaba Ntshakala
Nedbank Group has reported a robust financial performance for the first half of 2024, demonstrating resilience in the face of a challenging operating environment.
During a meeting attended by Nedbank Eswatini Managing Director Fikile Nkosi, the group’s financial results were presented, which shows notable improvements across various metrics.
For the six months ending 30 June 2024, Nedbank Group’s headline earnings (HE) rose by 8% year-on-year (yoy) to E7.9 billion.
This growth was driven by significant increases in non-interest revenue (NIR), a reduction in impairment charges, and effective expense management.
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These factors partially offset the muted growth in net interest income (NII) and lower income from associates.
The return on equity (ROE) also saw an increase, reaching 15.0%, up from 14.2% in the first half of 2023.
Nedbank’s Chief Executive, Jason Quinn acknowledged the difficulties posed by the economic environment in the first half of 2024.
“Economic activity remained weak amid geopolitical uncertainties, persistent inflation, high interest rates, and the looming national elections in South Africa,” Quinn said.
He emphasized the group’s cautious optimism regarding the potential benefits from South Africa’s Government of National Unity, anticipating better macroeconomic conditions in the latter half of 2024 and beyond.
Quinn highlighted the improvements in trading conditions due to stabilized electricity supply, although he noted that progress in addressing other infrastructure challenges has been limited.
Despite these hurdles, the group remains confident in achieving its medium-term targets, aiming to increase ROE to 17% by 2025 and surpass 18% in the long term.
The financial performance was further strengthened by an 11% increase in headline earnings per share (HEPS) to 1,699 cents, a 12% rise in diluted HEPS (DHEPS) to 1,650 cents, and a 12% growth in basic earnings per share (EPS) to 1,700 cents.
These increases outpaced the 8% growth in headline earnings, reflecting the impact of a R5 billion capital optimization initiative completed in the first half of 2023.
Nedbank’s balance sheet remained strong, with Common Equity Tier 1 (CET1) and Tier 1 capital ratios of 13.3% and 14.7%, respectively, well above board-approved target ranges and the South African Reserve Bank (SARB) minimum requirements.
Reflecting its solid performance and robust capital and liquidity positions, the group declared an interim dividend of 971 cents per share, an 11.5% increase from the 871 cents per share declared in June 2023, with a payout ratio of 57%
Nedbank Group leads in client experience and brand sentiment in Eswatini and Mozambique
Nedbank Group Limited has asserted its leading position in client experience and brand sentiment in Eswatini and Mozambique.
This announcement was made during a financial presentation by Dr. Terence Sibiya, the Group Managing Executive for Nedbank Africa Regions.
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Dr. Sibiya revealed that Nedbank achieved the number one position in client experience, as measured by the Net Promoters Score (NPS), in both Eswatini and Mozambique.
Additionally, the bank secured the top spot in brand sentiment across all markets where it operates.
Client experience is all the interactions customers have with your company at all stages of the customer journey.
Whether it’s a call to customer service, observing an ad, or something as simple as paying a bill, every exchange impacts how a customer perceives a business.
